RBA Coy on Further Rate Cut After Holding Fire; Aussie Jumps

Australia left its key interest rate unchanged at a record low and was coy on whether further cuts would be needed to boost growth, sending the currency higher.

Central bank Governor Glenn Stevens and his board kept the cash rate at 2 percent in Sydney Tuesday, as predicted by traders and economists. “Monetary policy needs to be accommodative” as the economy is likely to operate with spare capacity “for some time yet,” Stevens said.