Fxstreet.com (Jakarta) - The Reserve Bank of Australia as expected left its cash rate target unchanged at a 49-year low of 3.00% after a policy meeting earlier Tuesday.

Strong gains in global equity prices over recent weeks also likely contributed to the RBA board's decision to keep interest rates on hold. But economists have said further cuts are nevertheless likely over coming months.

Data is soon expected to confirm that Australia's economy is in a technical recession, with unemployment widely expected to move higher as the full force of the global financial crisis hits home.

The RBA has cut interest rates by 425 basis points since the collapse of U.S. investment bank Lehman Brothers in September sent the global financial system into a spin.

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