The Reserve Bank of Australia left its key interest rate unchanged at a record low on Tuesday as policymakers viewed that a period of stability in interest rates is likely to be the most prudent course.
The monetary board led by Governor Glenn Stevens decided to maintain the cash rate at 2.50 percent as widely expected by economists.
The RBA has reduced the cash rate by a cumulative 225 basis points since November 2011 to help the economy sustain demand in areas outside the resources sector in view of fading support from the mining boom.
Stevens said last week there is encouraging early evidence that the so-called 'handover' from mining-led demand growth to broader private demand growth is beginning.
Today RBA said resources sector investment spending is set to decline significantly and, at this stage, signs of improvement in investment intentions in other sectors are only tentative. Public spending is expected to be subdued.
According to the central bank's assessment, the decline in the exchange rate from its highs a year ago will assist in achieving balanced growth in the economy.
The bank expects inflation to be consistent with the 2-3 percent target over the next two years. The board judged that monetary policy is appropriately configured to foster sustainable growth in demand and inflation outcomes consistent with the target.
According to policymakers, continued accommodative monetary policy should provide support to demand, and help growth to strengthen over time.
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June 19, 2026 16:46 ET Major central banks continued to dominate the economic news flow this week too, led by the Federal Reserve, as they announced their latest policy decisions. The Federal Reserve policy session was in focus as it was the first to be led by the new chief Kevin Warsh. In Europe, central banks of the U.K. and Switzerland announced their rate decisions. In Asia, the Bank of Japan drew attention for its policy moves, while data out of China threw some light on the state of the economy.