RBA Keeps Rates on Hold

Australia’s central bank on Tuesday kept interest rates at a record low 2.5 percent for a sixth straight month despite continued weakness in the economy, and suggested it was likely to hold fire for some time.

“In the board’s judgement, monetary policy is appropriately configured to foster sustainable growth in demand and inflation outcomes consistent with the target,” Reserve Bank of Australia (RBA) governor Glenn Stevens said.  “On present indications, the most prudent course is likely to be a period of stability in interest rates.”

Stevens said consumer demand was firming, a solid expansion in housing construction was expected and some indicators of business conditions and confidence were showing improvement.

AFP

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