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Reserve Bank of Australia maintains cash rate

TheReserve Bank ofAustralia kept the cash rate unchanged at 1.50%.

Thecentral bank said that monetary policy should help sustain economic growth and helpit achieve the inflation target over time. However, it expects inflation toremain low over time given subdued growth in Australia's labor costs andextremely low cost pressures overseas.

Meanwhile,the low interest environment continues to support domestic demand. A lowerexchange rate since 2013 has helped the traded sector. However, an appreciatingexchange rate could complicate the country's growth.