Sydney, Oct 6 (IANS) Australia’s central bank has left its official interest rates at a record low two-percent for the fifth straight month despite a moderately expanding global economy.
The Reserve Bank of Australia’s (RBA) decision on Tuesday was widely expected by analysts, with only slight modifications to the central bank’s Governor Glenn Stevens’ accompanying statement from the previous month, reported Xinhua.
Stevens said the RBA’s board judged it appropriate to leave the cash rate unchanged in spite of Australia’s terms of trade falling from low-key commodity prices, among others.
“The Federal Reserve is expected to start increasing its policy rate over the period ahead, but some other major central banks are continuing to ease policy,” Stevens said.
“Overall, global financial conditions remain very accommodative.”
Stevens noted the strengthening house prices in Sydney and Melbourne, however, “regulatory measures are helping to contain risks that may arise from the housing market,” Stevens said.
Monetary policy needs to remain accommodative as low interest rates are acting to support borrowing and spending while Australia ‘s growth has been “somewhat below longer-term averages for some time”, Stevens said.