The bank decided to keep the rate the same and following are the reasons why it did so.
- Global growth prospects have weakened.
- United States continues at a gradual but somewhat slower pace.
- Europe point to a renewed contraction.
- China and other emerging economies, the deceleration in growth has been greater than anticipated,
- This slowdown in global activity has led to a sizeable reduction in commodity prices
- Bank expects total CPI inflation to remain noticeably below the 2 per cent target over the coming year before returning to target around mid-2013.
Therefore no rate raise in the horizon – at least for now.