Australia’s central bank kept interest rates steady at a record low 1.5% Tuesday, and signalled that they would remain unchanged for the time being.
Having eased monetary policy at its May and August meetings, “the Board judged that holding the stance of policy unchanged at this meeting would be consistent with sustainable growth in the economy and achieving the inflation target over time,” outgoing Gov. Glenn Stevens said in his final monetary policy statement.
His successor, Philip Lowe, is expected to pursue a similar policy approach to Mr. Stevens, allowing inflation to dip below or rise above the bank’s 2% to 3% target band as needed to manage shifts in the economy and markets.
Current central-bank forecasts suggest inflation will remain subdued for some time.