Australia’s central bank kept interest rates at a record-low on Tuesday as a drop in house prices accelerated.
Borrowing costs have stayed at 1.50 percent since they were last cut in August 2016, when the economy was transitioning away from an unprecedented mining investment boom.
“The low level of interest rates is continuing to support the Australian economy,” RBA governor Philip Lowe said in a statement.
“Further progress in reducing unemployment and having inflation return to target is expected, although this progress is likely to be gradual.”
The RBA has remained positive about the Australian economy and the strengthening labour market, but appears to be keeping a closer watch on several risks, including low inflation, weak wages growth and uncertainty over consumer spending.
