The Reserve Bank of Australia on Tuesday retained the cash rate unchanged after cutting it to a record low of 2.75 percent last month. However, the central bank still sees scope for further monetary easing.
The decision was in line with economists expectations. At the meeting, the Reserve Bank Board judged that the easier financial conditions now in place will contribute to a strengthening of growth over time.
According to a statement by Governor Glenn Stevens, the Board maintained the view that the current inflation outlook "may provide some scope for further easing, should that be required to support demand."
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