Investing.com - The Reserve Bank of Australia held its benchmark interest rate at a record low on Tuesday, in a widely expected decision, and reiterated that it expects borrowing costs to remain low for an extended period of time.
In a statement, the RBA said it was maintaining its benchmark interest rate at 2.5%, in line with market expectations.
Commenting on the decision, RBA Governor Glenn Stevens said "the most prudent course is likely to be a period of stability in interest rates."
Stevens added that, “the exchange rate remains high by historical standards, particularly given the declines in key commodity prices, and hence is offering less assistance than it might in achieving balanced growth in the economy.”
Following the decision, the Australian dollar was higher against its U.S. counterpart, with AUD/USD easing up 0.03% to trade at 0.9337.
Meanwhile, Asian stock markets ended mixed. Australia’s S&P/ASX 200 closed 0.4% lower, Hong Kong's Hang Seng rose 0.1%, China’s Shanghai Composite inched down 0.15%, while Japan’s Nikkei 225 lost 1%.