Australia keeps interest rates at 2.5%

|By:, SA News Editor

As expected, the Reserve Bank of Australia has held its key cash rate at 2.5% for the seventh month in a row and indicated that it will continue the policy amid high unemployment.

"On present indications the most prudent course is likely to be a period of stability in interest rates," Governor Glenn Stevens said in a statement. "The bank expects unemployment to rise further before it peaks," he added.

The jobless rate is at a 10-year high of 6%.

The S&P/ASX 200 is +0.3%, while the Australian dollar is +0.2% to $0.895. (PR)

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