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Australia keeps rates unchanged at record low

Australia's central bank on Tuesday kept benchmark interest rates unchanged at a record low of 2.5 percent, as expected.

In a statement, the Reserve Bank of Australia (RBA) said its monetary policy was appropriate, adding that past interest rates were still making their way through the economy.

The RBA also said the Australian currency remained "uncomfortably high," and needed to fall further to achieve a balanced growth in the economy.

The Aussie dollar fell a quarter of a U.S. cent after the statement.

The Reserve Bank of Australia (RBA) headquarters in the central business district of Sydney, Australia
Dan Himbrechts | Bloomberg | Getty Images
The Reserve Bank of Australia (RBA) headquarters in the central business district of Sydney, Australia

"The clear message is that they are a bit nervous about the strong Australian dollar. They've been trying to talk it down but what's been missing is a clear easing statement in the statement itself. We usually have to wait for the minutes before the easing bias comes out," said Shane Oliver, Head of Investment Strategy & Chief Economist at AMP Capital Investors.

"They're trying to step up the pace of jawboning but by the same token, they don't want to have to cut interest rates again so it's a fine line between a booming housing sector and getting the rest of the economy stronger. And to do the latter, you need to get the Aussie down."

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