SYDNEY, Dec. 3 (Xinhua) -- The Reserve Bank of Australia (RBA) kept the official interest rate on hold at 0.75 percent following a monthly board meeting on Tuesday.
The country's interest rate will remain at the all-time low for a third consecutive month, after the RBA delivered it’s last 0.25 basis point cut this year at its October meeting.
Markets were mostly expecting the outcome, with policy makers waiting to see the effects of existing rate cuts and changes to government tax policies.
In a statement released after the meeting, RBA governor Philip Lowe cited a lessening of international risks as influencing the decision to keep the cash rate on hold.
“Expectations of further monetary easing have generally been scaled back. Financial market sentiment has continued to improve and long-term government bond yields are around record lows in many countries, including Australia,” Lowe said.
With borrowing rates at historically low levels both for businesses and households Lowe said that growth is expected to gradually improve to around 3 percent in 2021.
“After a soft patch in the second half of last year, the Australian economy appears to have reached a gentle turning point,” he said, though did not rule out the possibility of further cuts in the future.
“The Board is prepared to ease monetary policy further if needed to support sustainable growth in the economy, full employment and the achievement of the inflation target over time.”
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