Australia leaves rates at 2.5%

|By:, SA News Editor

As expected, the Reserve Bank of Australia has left its key overnight cash-rate target at a record low of 2.5%.

RBA Governor Glenn Stevens said the Australian dollar is "uncomfortably high" and needs to fall for the country to achieve balanced growth.

"The RBA is certainly using stronger language," says HSBC economist Paul Bloxham. "I think they're really trying to jawbone the Aussie dollar lower if they can.

Still, markets don't expect a rate move in the next half year, especially with low borrowing costs boosting house prices.

The AUD-USD is -0.3% to $0.9483, while the S&P/ASX 200 is +0.8%. (PR)

ETFs - Stocks: EWA, EWAS, KROO, AUSE, FAUS. Bonds: AUD, AUNZ. Currency: FXA, GDAY, CROC.