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Australia's central bank holds rates, still open to easing

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Australia's central bank held its cash rate steady at 2.25 per cent for a second month on Tuesday, a surprise to some investors who had looked for a cut, given recent steep declines in the price of iron ore.

[SYDNEY] Australia's central bank held its cash rate steady at 2.25 per cent for a second month on Tuesday, a surprise to some investors who had looked for a cut, given recent steep declines in the price of iron ore.

The currency climbed three quarters of a US cent after the Reserve Bank of Australia (RBA) skipped on an easing, though it did leave the door open to a move in coming months.

Markets had priced in more than a 60 per cent chance of an easing this week, given further falls in prices of key commodity exports and a general reluctance by businesses to invest more.

REUTERS

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