The Reserved bank of Australia holds rates at record low

The Australian Reserved Bank held interest rates at a record low 1.5 percent as expected on Tuesday and signaled that the economic conditions are in line with its targets for inflation and growth.

Philip Lowe, the central bank's governor said that conditions have improved in recent months, such as business and consumer confidence picking up. The advanced economies also are expected to see above-trend growth. He added that higher commodity prices have strengthened the national income. His expectations for US interest rates hike are positive and does not see further monetary easing in other major economies.

Growth in China is supported by expenditure on infrastructure and construction of properties. The combination of growth and rapid increase of loans means that medium-term risks to Chinese growth remain, Lowe said in a statement.

Gareth Aird, chief economist at Commonwealth Bank, said the central bank will probably keep interest rates the same until the end of the year and there is no sense to raise, while inflation is not got enough.

Source: CNBC

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