The Reserve Bank of Australia maintained its key interest rate at a record low on Tuesday as widely expected by economists.
The policy board governed by Glenn Stevens decided to leave the cash rate at 2.00 percent. The bank lowered the rates by 25 basis points each in February and May.
The board judged that leaving the cash rate unchanged was appropriate at this meeting.
“Information on economic and financial conditions to be received over the period ahead will inform the Board’s assessment of the outlook and hence whether the current stance of policy will most effectively foster sustainable growth and inflation consistent with the target,” the bank said in a statement.
Policymakers observed that the Australian dollar has declined noticeably against a rising US dollar over the past year. Further depreciation seems both likely and necessary, particularly given the significant declines in key commodity prices, the bank said.
The material has been provided by InstaForex Company – www.instaforex.com