The Reserve Bank of Australia on Tuesday kept the cash rate steady at 2 per cent.
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The Reserve Bank of Australia on Tuesday kept the cash rate steady at 2 per cent, but left the door ajar for a further cut this year.
The decision was widely expected, and after an initial spike the Australian dollar quickly settled back to around US74.80¢.
"The board today judged that leaving the cash rate unchanged was appropriate at this
The statement's conclusion was almost identical to last month's, when the RBA also opted to leave the cash rate unchanged.
The main change in language in this month's statement concerns the unfolding dramas in Greece in China, which Mr Stevens noted had yet to affect long-term interest rates.
"Despite fluctuations in markets associated with the respective developments in China and Greece, long-term borrowing rates for most sovereigns and creditworthy private borrowers remain remarkably low," Mr Stevens noted.