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The Reserve Bank has left interest rates on hold this morning, a stance widely tipped by economists after recent reports showed easing inflationary pressure and slowing retail sales growth.

The base cash rate remains at 6.25 per cent after three rises in 2006. The RBA does not release explanatory notes when it leaves rates on hold.

Market expectations of another interest rate rise shifted at the end of last month, when data showed consumer prices in the final three months of 2006 had fallen 0.1 per cent, the first drop since 1999. Falling food and fuel prices contributed to the slowdown.

Figures out earlier this week from the Australian Bureau of Statistics also showed retail trade sales grew by a seasonally adjusted 0.3 per cent to $18.44 billion in December, less than the 0.5 per cent pace analysts had forecast for the crucial Christmas shopping period.….more

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