Reserve Bank of Australia keeps cash rate at record low at July meeting

The Reserve Bank of Australia has kept the cash rate at a record low of 0.25 per cent at its monthly board meeting, as widely expected by economists.

The central bank said notwithstanding the signs of a gradual improvement after the coronavirus lockdown was eased, the nature and speed of the economic recovery remains highly uncertain.

Governor Philip Lowe pledged not to increase the cash rate target until progress was made towards full employment and the board was confident inflation would be sustainably within the 2 per cent to 3 per cent target band.

AAP