The Reserve Bank of Australia has kept interest rates on hold at a historic low of 1.75 per cent as widely expected.
- The Australian dollar jumps to 74.2 US cents
- Experts are forecasting another rate cut in August
- RBA governor Glen Stevens pointed to concerns about house prices starting to rise again (good for investors)
In a statement, Reserve Bank governor Glenn Stevens said while the global economy was continuing to grow, it was doing so at a lower-than-average pace.
“In Australia, recent data suggests overall growth is continuing, despite a very large decline in business investment. Other areas of domestic demand, as well as exports, have been expanding at a pace at or above trend,” he wrote.