Australian interest rates held at 2.5 percent ahead of election
AFPSYDNEY -- Australia's central bank on Tuesday left interest rates on hold at a historic low of 2.5 percent, in a widely expected move four days ahead of national elections.
September 4, 2013, 6:39 pm TWN
The Reserve Bank of Australia (RBA) last month cut rates to their lowest level since it was established in 1959, underscoring fears of a slowdown as country's the decadelong mining boom slows down.
On Tuesday RBA Governor Glenn Stevens said in a statement: “At its meeting today, the board decided to leave the cash rate unchanged at 2.5 percent.”
“The easing in monetary policy since late 2011 has supported interest-sensitive spending and asset values, and further effects can be expected over time, including from the declines in rates seen over recent months.”
The bank has cut back its official cash rate by 225 basis points since November 2011 to spur growth in the economy as it grapples with a cool down in investment in the Asia-driven mining boom.