Australian central bank keeps interest rate on hold at 0.25pc

4 June, 2020 12:00 AM printer

SYDNEY: Australia's official interest rate remained on hold at 0.25 percent on Tuesday, following the June monthly meeting of the country's central bank.

The Reserve Bank of Australia (RBA) took a cautious approach, as was expected by most economic observers in the midst of COVID-19 volatility, reports Xinhua.

Governor of the RBA, Philip Lowe explained that while Australia's economy was going through a very difficult period, it is possible the downturn may not be as severe as initially expected.

"Over the past month, infection rates have declined in many countries and there has been some easing of restrictions on activity. If this continues, a recovery in the global economy will get under way, supported by both the large fiscal packages and the significant easing in monetary policies," Lowe said.