The Reserve Bank of Australia left its cash rate target unchanged at a 49-year low of 3.00% and signalled it may remain on the sidelines for a substantial period, allowing time for stimulus already announced to flow through to the battered economy.
The decision leaves rates in
Economists said the RBA appears content to at least wait for the government's federal budget next week, which is expected to forecast a substantial loosening of fiscal policy.
"Monetary policy has been eased significantly. Market and mortgage rates are at very low levels by historical standards and business loan rates are below average, reducing debt-servicing burdens considerably," RBA Governor Glenn Stevens said in a statement.
"Much of the effect of these changes is yet to be observed. The stance of monetary policy, together with the substantial fiscal initiatives, will provide significant support to domestic demand over the period ahead," Stevens said.