Economics
Australia Holds Key Rate as Central Bank Sounds Caution on China
- Benchmark rate has now been at record low 1.5% for two years
- Inaction makes bank an outlier from peers tightening policy
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Australia held its interest rate at a record low as the central bank delivered a more sobering take on the global economy.
Reserve Bank Governor Philip Lowe and his board kept the cash rate at 1.5 percent, where it has now been for two years, in Sydney on Tuesday. Lowe amended his language on China’s economy in his accompanying statement, saying growth “has slowed a little” instead of growing solidly. He noted authorities there easing policy while heeding risks in the financial sector.