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In a relief for business, the Reserve Bank has decided to not lift the official interest rate for the third time this year. The Bank's board, which met yesterday, has opted to keep the cash rate unchanged at 4.75%. Despite earlier indications by Governor Ian Macfarlane that rates had some way to go before they reached the Bank's "neutral" setting on monetary policy, concerns about the state of the rural economy, coupled with instability in world markets, have obviously had an influence on its actions – for now at least.
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Thursday, February 09, 2012