Just as the majority of Economists predicted, at its monthly meeting today The Reserve Bank of Australia decided to keep the cash rate on hold, while it awaits indicative signs of the global economy.

The cash rate remains 3.5 percent.

‘‘The RBA seems comfortable with the current accommodative monetary policy settings given the downbeat and uncertain global environment,’’ said Moody’s Economy.com analyst Katrina Ell.

‘‘Unless the volatile situation in Europe deteriorates further, the most prudent strategy for coming months is to hold tight and gauge the impact of earlier monetary stimulus on the domestic economy,’’ she said.

Between November 2011 and June this year the RBA cut interest rates four times as the Australian economy slowed and concerns about the world economy grew. RBA Governor Glen Stevens reiterated the RBA’s concerns about Europe’s ongoing debt issues. ‘”Financial markets have responded positively to signs of progress, but Europe will remain a potential source of adverse shocks for some time,” said Mr Stevens said in the accompanying statement.

Since the RBA began cutting rates late last year, they have cut the rate by 1.25%, banks have passed on around 1 percent of these cuts to borrowers. For households on a typical $300,000 mortgage over 25 years, that means a saving of about $196 in monthly repayments.