Australia’s central bank held interest rates steady for a 10th straight policy meeting on Tuesday, citing evidence of continued growth at home despite an unhelpful rise in the local dollar. Bucking the worldwide charge toward negative rates, the Reserve Bank of Australia (RBA) kept its cash rate at 2 percent in a widely expected decision.
Again the door was left open to an easing should developments in inflation, unemployment or the global economy warrant it, but there was little sign a move might be imminent. “The Board judged that there were reasonable prospects for continued growth in the economy,” RBA Governor Glenn Stevens said in a brief statement.
“Continued low inflation would provide scope for easier policy, should that be appropriate to lend support to demand.” The one major change to the statement was to note that the Aussie dollar had risen recently, in part due to policy easing by other central banks. “Under present circumstances, an appreciating exchange rate could complicate the adjustment under way in the economy,” said Stevens.