SYDNEY (APP) – Australia’s central bank left interest rates at the historic low of 2.0 percent on Tuesday, saying the economy was expanding moderately while inflation was contained.
The Reserve Bank of Australia (RBA), which last lowered rates 25 basis points to 2.0 percent in May, added that the Australian dollar was also adjusting to lower commodity prices as a decade-long mining boom unwinds.
“The board today judged that leaving the cash rate unchanged was appropriate at this meeting,” RBA governor Glenn Stevens said in a statement.
Stevens said the global economy was also expanding at a moderate pace, assisted by stronger US growth, despite recent softening in China and East Asia.
“In Australia, most of the available information suggests that moderate expansion in the economy continues,” he said.
The Australian dollar, which has reached historic highs in recent years, was largely unmoved by the decision and trading at 71.36 US cents.