Australia's central bank holds interest rate at 2.5%
Australia's central bank
Sydney - XINHUA
The Reserve Bank of Australia (RBA) kept interest rates unchanged at 2.5 percent on Tuesday but hinted a cut could happen later in the year.
Despite widespread speculation that the central bank would cut rates at its monthly board meeting, it kept the rates on hold.
RBA Governor Glenn Stevens said the board believed it was correct to hold rates steady under the current circumstances, however he pointed to a further cut soon.
"At today's meeting the Board judged that it was appropriate to hold interest rates steady for the time being," he said.
"Further easing of policy may be appropriate over the period ahead in order to foster sustainable growth in demand and inflation consistent with the target."
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