Tuesday, the Reserve Bank of Australia retained its key interest rate as expected.

At its meeting, the Board decided to leave the cash rate unchanged at 3%. The central bank has reduced the cash rate by 125 basis points since December 2008 and the official cash rate now stands at its lowest level in 49 years.

RBA Governor, Glenn Stevens said, In assessing whether further reductions in the cash rate are required over the period ahead, the Board will monitor how economic and financial conditions unfold, and how they impinge on prospects for a sustainable recovery in economic activity.

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