RBA holds its nerve on rates, defying wave of global easing

Sydney

AUSTRALIA'S central bank held its policy nerve in the face of global easing and financial market upheaval that's frustrating efforts to shift the economy away from mining. Yet it reiterated that limited price pressure provides scope to ease rates further.

Reserve Bank of Australia (RBA) governor Glenn Stevens and his board left the cash rate at 2 per cent on Tuesday, as forecast by all 27 economists surveyed and in line with traders' bets. Mr Stevens, in a little-changed statement, repeated that he was watching the nation's labour market and global and domestic fallout from market turmoil.