RBA holds rate amid fears of strong currency stunting growth

Sydney

AUSTRALIA'S central bank kept interest rates unchanged while warning that a rising currency is expected to subdue inflation and weigh on the outlook for growth and employment.

Governor Philip Lowe and his board held the cash rate at 1.5 per cent on Tuesday, as expected by markets and all 24 economists surveyed. Since the board last met, the economy recorded its biggest back-to-back gain in full-time jobs in almost 30 years, providing some confidence households can manage the record debt they have accrued amid an east coast housing boom.