Aussie central bank holds rates steady, eyeing a lower currency

Sydney

AUSTRALIA'S central bank held interest rates at record lows on Tuesday as sliding commodity prices, a still-high currency and mounting economic uncertainty in China argue for continued stimulus, and even the chance of more cuts.

The Reserve Bank of Australia (RBA) underlined the need for a lower currency after its monthly policy meeting, even though it had only just hit a six-year trough on the US dollar. "Further depreciation seems both likely and necessary, particularly given the significant declines in key commodity prices," said RBA governor Glenn Stevens.