RBA keeps rates at record low 2.5% after cuts in August and May

Australia’s central bank kept its cash rate at a record low of 2.5 percent on Tuesday as a report showed past easings lifting home prices to historic highs, though there was little guidance on the chance of further cuts.

The Australian dollar jumped in response as many in the market had expected a more dovish tone from the Reserve Bank of Australia after its monthly policy meeting.

Instead, the central bank stayed mum on the outlook.   “The Board will continue to assess the outlook and adjust policy as needed to foster sustainable growth in demand and inflation outcomes consistent with the target,” RBA Governor Glenn Stevens said in a statement.


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