Australia central bank holds interest rates for 10th month

SYDNEY: Australia’s central bank held interest rates for a 10th month on Tuesday, taking an optimistic tone on the economy even while acknowledging that growth likely slowed last quarter by more than it expected. The Reserve Bank of Australia (RBA) kept rates at a record low 1.50 per cent in a widely expected move after last easing in August of 2016. It cited a stabilisation in mining investment after years of steep falls, a rebound in the price of Australia’s top exports of iron ore and coal, and the country’s biggest-ever home building boom. “Looking forward, economic growth is still expected to increase gradually over the next couple of years to a little above 3 per cent,” the RBA said in a statement. That expression of confidence was enough to lift the Australian dollar closer to a 10-day high of $0.7500 touched on Monday. — AFP