Australia central bank keeps rates near zero as economy picks up speed

By Reuters10 days ago

Reuters. FILE PHOTO: Two women walk next to the Reserve Bank of Australia headquarters in central Sydney

By Swati Pandey

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SYDNEY (Reuters) - Australia's central bank left its key rates at near zero for a fifth straight meeting on Tuesday and pledged to keep policy super loose for a prolonged period even as the economy recovers at a rapid pace from the COVID-19-led downturn.

The Reserve Bank of Australia (RBA) reiterated its commitment to keep the cash rate at the record-low of 0.1% for as long as is needed to pull down unemployment and push inflation higher.

The RBA's as-expected decision comes as it painted a rosy picture of the A$2 trillion ($1.55 trillion) economy, and upgraded the growth forecast to 4.75% over 2021, from its February forecast of 3.5%.

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