RBA Remains Steady at 2%

Australia’s central bank kept interest rates steady at a record low 2.0 percent, in line with analysts’ expectations, but the Australian dollar still pushed higher.

All 24 economists polled by Reuters expect the RBA to be on hold, but eight respondents say interest rates could be reduced to 1.75 percent or lower by December, if non-mining business investments remain subdued.

“Having cut rates in May, there doesn’t seem to be a case for a back-to-back cut,” Ben Jarman, senior economist at JPMorgan, told CNBC prior to the decision.