Australias central bank left its key interest rate unchanged at a record low today. The board of the Reserve Bank of Australia, governed by Philip Lowe, maintained the cash rate at 1.50%. The bank had reduced the rate by 25-basis points each in August and May last year. The Board noted that holding the stance of monetary policy unchanged would be consistent with sustainable growth in the economy and achieving the inflation target over time.
The bank stated further that the low level of interest rates is continuing to support the Australian economy. Although further progress in reducing unemployment and having inflation return to target is expected, this progress is likely to be gradual, according to the bank.