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RBA Sees Rate Cuts Working as Currency Helps Stabilize Economy

The Reserve Bank of Australia said the economy is responding to low interest rates and Deputy Governor Philip Lowe indicated a higher currency and savings levels allowed for lower borrowing costs even as mining boomed.

The impact of the policy easing “still had further to run,” the RBA said in minutes today of the March 5 meeting where it kept its key rate at 3 percent. “While further reductions may be required, on the information currently to hand it was appropriate to hold rates steady.”