RBA Keeps Rates Unchanged



The Reserve Bank of Australia, or RBA, decided on Tuesday to keep its key interest rate unchanged. The monetary policy board decided to maintain the cash rate at 2.5 percent in its August meeting. The same rate has been maintained since August 2013. "Members noted that there was inevitably a significant degree of uncertainty about the outlook, given the number of forces working in different directions." the RBA said in the minutes. Despite recent higher readings, inflation is expected to be in line with the target of 2-3 percent over the next two years, the Board said. The Board assessed that the current monetary policy was appropriately configured and remained accommodative and supportive of demand. The most prudent course is likely to be a period of stability in interest rates, the Board said.

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