Reserve Bank leaves interest rates on hold at 2pc despite global market volatility
Updated
The Reserve Bank has left interest rates on hold at their historic low of 2 per cent for the fourth consecutive month.
The lack of action was widely expected, with markets pricing in less than a 10 per cent chance of a change and a recent Bloomberg survey of 27 economists forecast no change.
The RBA cut rates to their historic low in May.
The central bank has not been swayed by recent global market volatility, holding to its stance of further monitoring the Australian economy before deciding its next move.
"Equity markets have been considerably more volatile of late, associated with developments in China, though other financial markets have been relatively stable," RBA governor Glenn Stevens said in a prepared statement.
Mr Stevens said the economy should continue its modest expansion.
"While growth has been somewhat below longer-term averages for some time, it has been accompanied with somewhat stronger growth of employment and a steady rate of unemployment over the past year," he said.
The RBA appears to be becoming more sanguine about exchange rates, noting: "The Australian dollar is adjusting to the significant declines in key commodity prices."
After the announcement the Australian dollar remained largely unmoved, trading at 0.7145 cent against the US dollar.
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