World Economy

Record-Low Rate

Record-Low RateRecord-Low Rate

Australia’s central bank kept interest rates at a record low to spur an economy struggling for traction against a high currency and tumbling export prices. Governor Glenn Stevens kept the overnight cash rate target at 2.5 percent for a 16th month, saying in a statement that “key commodity prices have declined significantly in recent months.” Today’s board decision was predicted by all 30 economists surveyed by Bloomberg News and markets had priced almost no chance of a move. “The most prudent course is likely to be a period of stability in interest rates,” Stevens said, repeating comments from last month on rates and the currency.