Australia's Central Bank kept rates at a record low

Australia’s Central Bank left its key interest rate at a record low after three cuts last year.

the Reserve Bank of Australia kept rates at 0.75% per annum. The regulator’s decision coincided with the expectations of most analysts polled by Reuters.

before that, the Central Bank had reduced the rate in June, July and October 2019. The reserve Bank of Australia pointed to evidence that these steps contributed to the growth in housing prices and supported the reduction of household debt.

“the Council will continue to closely monitor developments, including in the labour market. He remains ready to take further monetary easing if necessary to support sustainable economic growth”, — said the head of the Reserve Bank of Australia Philip Lowe.

the Regulator has kept the economic growth forecasts for this year and next at the level of 2.75% and 3% respectively.

the Outlook was supported by “the low level of interest rates, recent tax return, current spending on infrastructure, more favourable prospects for the resources sector and, later in the year, the expected recovery in housing construction,” said Lowe.

Economists expect the Central Bank will cut rates to 0.5% at the meeting in April as the economic Outlook is overshadowed by forest fires in Australia and the rapidly expanding Chinese coronavirus.

Lowe admitted that these two events will have a temporary impact on the growth of the Australian economy and reiterated that the country will need to maintain low interest rates for an extended period.