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- Reserve Bank of Australia keeps its interest rate unchanged at 2.00% in April
Reserve Bank of Australia keeps its interest rate unchanged at 2.00% in April
The Reserve Bank of Australia (RBA) kept its interest rate unchanged at 2.00% on Tuesday. This decision was expected by analysts.
The RBA Governor Glenn Stevens said that the board's decision was reasonable "for continued growth in the economy, with inflation close to target".
He pointed out that further interest rate cut is possible.
"Continued low inflation would provide scope for easier policy, should that be appropriate to lend support to demand," the RBA governor said.
But Stevens noted that the next central bank's decision would depend on the incoming economic data.
The RBA governor said that the Australian economy continued to rebalance after the mining investment boom.
Stevens also said that the lending to business picked up.
The RBA governor also said that consumer price inflation remained "quite low", adding that inflation in Australia was likely to remain low over the next year or two.
He pointed out that the monetary policy should be accommodative.
Stevens noted that the Australian dollar appreciated recently due to higher commodity prices and the monetary policy moves in the world, which could "complicate the adjustment under way in the economy" in Australia.
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