Australia holds key rate steady in widely expected decision

|By:, SA News Editor

Australia stands pat, holding its key interest rate at 2.5%.

The aussie is “still uncomfortably high,” the RBA says, adding that "a lower level of the exchange rate is likely to be needed to achieve balanced growth."

"The economy has been growing a bit below trend over the past year and the unemployment rate has edged higher," Governor Glenn Stevens notes, before predicting that this dynamic "is likely to persist in the near term, as the economy adjusts to lower levels of mining investment."

The aussie weakened on the news, trading down 0.3% against the greenback.

ETFs: FXA, EWA, AUD, AUSE, CROC, KROO, EWAS, GDAY, FAUS