6 Jan 2009

No January meeting for RBA

3:22 pm on 6 January 2009

The Reserve Bank of Australia is keeping with tradition and not meeting on Tuesday despite the economic downturn.

The bank meets on the first Tuesday of every month, except January.

But it has met in January in the past when tough economic conditions have warranted it.

The ABC reports there had been speculation the bank might meet on 6 January.

But the minutes from the last board meeting showed one of the reasons for a substantial cut in interest rates in December was the two-month break until the next meeting.

The bank lowered the cash rate on 2 December from 5.25% to 4.25% - its lowest in six years.