Reserve Bank of Australia Holds Rates at Record-Low 2%
- Governor Stevens leaves benchmark rate at record-low 2 percent
- RBA shows greater confidence inflation will remain contained
RBA Holds Its Policy Nerve on Rates
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Australia’s central bank held its policy nerve in the face of global easing and financial market upheaval that’s frustrating efforts to shift the economy away from mining. Yet it reiterated that limited price pressure provides scope to ease rates further.
Reserve Bank of Australia Governor Glenn Stevens and his board left the cash rate at 2 percent Tuesday, as forecast by all 27 economists surveyed and in line with traders’ bets. Stevens, in a little changed statement, repeated that he was watching the nation’s labor market and global and domestic fallout from market turmoil.