Australia Maintains Key Rate

Australia’s central bank kept its key interest rate unchanged at a record low for two years even though other major central banks started tightening their policies, RTTNews reported. The board of the Reserve Bank of Australia, governed by Philip Lowe, voted to maintain the cash rate at 1.50%. The interest rate has been at the current level since August 2016. “Taking account of the available information, the board judged that holding the stance of monetary policy unchanged at this meeting would be consistent with sustainable growth in the economy and achieving the inflation target over time,” the bank said in a statement. The low level of interest rates is continuing to support the Australian economy, RBA noted. Further progress in reducing unemployment and having inflation return to target is expected, although this progress is likely to be gradual, the bank said. The RBA suggested that interest rates will not rise for a while yet, Paul Dales, an economist at Capital Economics, said. The economist expects the first rate hike in November next year.