THE pause button has been kept on rates, with the RBA sidelined on domestic and global economic woes.

The Reserve Bank’s board of directors voted to keep the cash rate at 4.75 per cent at its meeting in Sydney today.

It’s the ten-month anniversary of last year’s shock Melbourne Cup Day rise, and the longest stretch of a steady cash rate in four years

The chance of a rate hike today was virtually non-existent due to volatility in global markets and the likelihood of debt and economic troubles continuing in both Europe and the US.

The decision comes after billions of dollars were wiped off the Australian share market  this morning on large falls in Europe overnight.

It also follows month of uninspiring economic data, with consumer confidence at a record low, struggling manufacturing and tourism industries, and retail sales that continue to remain soft.

Unemployment also rose to 5.1 per cent, while yesterday’s job ads data showed a decrease in the number of ads being published.

Building approvals have also fallen, while the construction industry continues to suffer under lower levels of activity.

RBA Governor Glenn Stevens said the near-term growth outlook continues to look weaker than was expected a few months ago.

“Conditions in global financial markets have been very unsettled over recent weeks, as participants have confronted uncertainty about both the resolution of sovereign debt problems and the prospects for economic growth in Europe and the United States, he said in a statement.

“As a result, the outlook for the global economy is less clear than it was earlier in the year.

“Uncertainty and financial volatility is reducing confidence and may result in more cautious behaviour by firms and households in major countries. A number of forecasters have scaled back their global growth estimates over the past couple of months.

“Each of these variables is affected by other factors as well, but together they point to financial conditions being tighter than normal.”

The decision met with economists’ expectations. All 12 economists surveyed by AAP yesterday said they expected rates to stay on hold while none predicted a rate rise before the end of the year.

Westpac is the only institution saying the RBA would cut the cash rate in that period.

Read more: http://www.news.com.au