RBA Holds Rate at Record-Low 2.5% After Aussie Dollar Gains

Australia’s central bank left its key interest rate unchanged at a record low and said the currency’s recent climb will reduce support for the economy.

Governor Glenn Stevens kept the overnight cash-rate target at 2.5 percent and reiterated that borrowing costs were likely to remain steady for a period. “The decline in the exchange rate from its highs a year ago will assist in achieving balanced growth in the economy, but less so than previously as a result of the rise over the past few months,” he said.