Australia's central bank leaves key rate at 2.5%

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Australia's central bank on Tuesday left its benchmark interest rate unchanged at a record low of 2.5 percent.

All 27 economists polled by Reuters had expected the Reserve Bank of Australia (RBA) to leave monetary policy on hold.

In a statement, the RBA said there was likely to be a period of stability in interest rates.

"Looking ahead, continued accommodative monetary policy should provide support to demand, and help growth to strengthen over time. Inflation is expected to be consistent with the 2-3 percent target over the next two years," the RBA said in its statement.

"On present indications, the most prudent course is likely to be a period of stability in interest rates," it added.

Some economists expect the central bank to lower interest rates in the months ahead to lend support to the economy.

Goldman Sachs, for instance, expects a 25 basis point cut in the key rate in September.

The Aussie dollar was little changed around $0.9250 following the rate decision, but bounced off an earlier three-day low.