RBA keeps interest rate at record low

Sydney

AUSTRALIA'S central bank on Tuesday held interest rates at a record low 2.5 per cent, signalling its intention to keep an accommodative monetary policy while saying a weaker exchange rate is needed to support growth.

It was the 15th consecutive meeting in which the Reserve Bank of Australia (RBA) has left the cash rate unchanged, and reflected opposing pressures on the economy with a booming housing market and slumping commodity prices.

In a commentary on the decision, bank governor Glenn Stevens said: "Monetary policy is appropriately configured to foster sustainable growth in demand and inflation outcomes consistent with the target. On present indications, the most prudent course is…