Australia’s central bank keeps interest rates unchanged at 2.5% for 16 months.docVIP

Australia’s central bank keeps interest rates unchanged at 2.5% for 16 months 　　 Australia’s central bank keeps interest rates unchanged at 2.5% for 16 months 　　On the routine monetary policy meeting held on Dec. 2nd， the Reserve Bank of Australia （RBA） announced to keep its interest rates unchanged at a record low of 2.5%， which is in line with market expectations. 　　The RBA also hinted that it would maintain its monetary policy and a lower exchange rate would be needed to support the economic growth. 　　The RBA is widely expected to lower the interest rates by the second or third quarter of 2015. 　　Since August 2013 when the RBA lowered the rates， the country’s interest rates have been kept on hold for 16 months in a row， a long-term stable situation last seen during the period between December 1994 and July 1996. 　　Most data indicate that the country’s economy is on a moderate growth path， according to a statement made by RBA governor Glenn Stevens after the meeting. 　　Australian resource sectors experience an investment slump， while some other sectors see demand growing at different rates. Besides， the public spending is also on the downward trajectory as planned. Generally speaking， the RBA remains its expectation of below-trend economic growth for the next few quarters. 　　Stevens pointed out that the existing monetary policy helps maintain demand growth and keep the inflation rate under control. 　　“On present indications， the most prudent course is likely to be a period of stability in interest rates，” said the governor. 　　Though the exchange rate recently traded at lower levels， partly due to the strengthening US dollar， the Australian dollar is still higher than most estimates of its fundamental value， particularly given the sharp declines in key commodity prices in recent months， according to Stevens. 　　The governor stressed that a lower exchange rate is likely to be needed to achieve balanced economic growth. 　　 Australia’s biggest builder s