Australia’s central bank opted to hold interest rates on Tuesday, as forecast by economists.
The reserve Bank of Australia held its cash rate target at 1.5 per cent at its February meeting, in line with economists’ predictions compiled by Reuters.
RBA governor Philip Lowe said:
The low level of interest rates is continuing to support the Australian economy. Further progress in reducing unemployment and having inflation return to target is expected, although this progress is likely to be gradual. Taking account of the available information, the Board judged that holding the stance of monetary policy unchanged at this meeting would be consistent with sustainable growth in the economy and achieving the inflation target over time.
The Australian dollar, which had weakened slightly earlier in the session on worse than expected retail sales data, was 0.1 per cent lower against its US counterpart at $0.7873 following the RBA’s decision.