RBA Holds Key Rate at 4.75% to Gauge U.S., China Slowdowns
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The Reserve Bank of Australia kept the benchmark interest rate unchanged, saying that while its board considered boosting borrowing costs, it was prudent to hold off because of a clouded global economic outlook.
Governor Glenn Stevens held the overnight cash rate target at 4.75 percent in Sydney for a record eighth straight meeting, saying “the board remains concerned about the medium-term outlook for inflation.” He cited “the acute sense of uncertainty” in financial markets as a key factor for inaction.