As was widely expected, the Reserve Bank of Australia kept interest rates on hold at a record low of 1.5 percent on Tuesday, as the central bank remained stuck between the rock of rising housing prices and the hard place a higher jobless rate.
“The outlook continues to be supported by the low level of interest rates,” RBA Governor Philip Lowe said in a statement.
“Lenders have recently announced increases in mortgage rates, particularly those paid by investors. Financial institutions remain in a good position to lend. The depreciation of the exchange rate since 2013 has also assisted the economy in its transition following the mining investment boom. An appreciating exchange rate would complicate this adjustment.”
The Australian dollar dipped after the announcement, down 0.25% to 0.7581 against the dollar.