RTTNews - Tuesday, the Reserve Bank of Australia decided to leave its key interest rate unchanged as expected.

The board maintained the cash rate at 3%. The central bank has slashed the cash rate by 125 basis points since December 2008 and the official cash rate now stands at its lowest level in 49 years.

Governor, Glenn Stevens said monetary policy eased significantly. While, market and mortgage rates are very low levels by historical standards, business loan rates stayed below average. Further, fiscal steps are also supporting demand.

He added, Nonetheless, the prospect of inflation declining over the medium term suggests that scope remains for some further easing of monetary policy, if needed.

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