Reserve Bank keeps interest rate at historic low

The Reserve Bank of Australia has kept interest rates on hold at 2.0 percent.

In a statement, Reserve Bank governor Glenn Stevens said that leaving interest rates on hold was appropriate for now.

“At today’s meeting the board judged that the prospects for an improvement in economic conditions had firmed a little over recent months and that leaving the cash rate unchanged was appropriate at this meeting,”


“Members also observed that the outlook for inflation may afford scope for further easing of policy, should that be appropriate to lend support to demand.”

The cash rate has held at the historic low of two per cent since May.