Reserve Bank to keep interest rates on hold Markets RBA Governor Glenn Stevens:"On present indications, the most prudent course is likely to be a period of stability in interest rates." The Reserve Bank of Australia on Tuesday kept interest rates on hold at 2.5 per cent, as it again noted slack in the job market, rising house prices and concerns about growth in China. The cash rate has been at that level since August last year, and the RBA looks unlikely to change it for some time. Most economists are betting the central bank will leave the the cash rate until after the US Federal Reserve hikes its target short-term rate, expected some time in the second half of next year. With some lingering softness in the Australian economy, a few economists have still not discounted a cut in the cash rate. Governor Glenn Stevens on Tuesday ended his monthly statement by again referring to a "period of stability in interest rates." "In the Board's judgement, monetary policy is appropriately configured to foster sustainable growth in demand and inflation outcomes consistent with the target," the statement said. On present indications, the most prudent course is likely to be a period of stability in interest rates.