Room for more rate cuts:RBA

The Reserve Bank says it  still has room for more interest rate cuts.

It made the observation in a statement on monetary policy, just days after it surprised markets by keeping interest rates on hold.

In a key passage, the bank said: “The current inflation outlook would….however provide scope for easier monetary policy should demand conditions weaken materially.

“Over the months ahead, the Board will continue to monitor information on

economic and financial conditions and adjust the cash rate as necessary to foster sustainable growth and low inflation,” the bank added.

Analysts said it is unusual for the Reserve Bank to be as frank as this, about its intentions.

The bank lowered its marker interest rate twice, late last year.