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RBA Holds Key Rate as Commodity Upswing Outweighs Slowdown

  • All 27 economists surveyed forecast no change in cash rate
  • Annual growth figures predicted to slow in third quarter
Bloomberg business news

RBA Holds Cash Rate Target at 1.5%

Updated on

Australia’s central bank kept interest rates unchanged as a global commodity upswing eases the impact of a weaker economy at home.

Governor Philip Lowe left the cash rate at 1.5 percent Tuesday, saying “some slowing in the year-ended growth rate is likely” while noting that higher resource export prices “are providing a boost to national income.” The decision was predicted by economists and traders heeding Lowe’s concern that further easing could destabilize an economy where households are already saddled with record debt.