Rates left on hold at 2.75%

After an unexpected cut in interest rates last month, the Reserve Bank of Australia has decided to keep rates on hold at its June meeting.

With the effects of last month’s cut still flowing into the market and the Australian dollar slipping below parity, it’s likely the RBA will monitor the situation very carefully before making any additional rate adjustments this year.

RBA Governor Glenn Stevens says the growth in the global economy remains slower than average, but Australia’s economy is expected to keep growing at a slow pace.

He has, however, left the door open for more cuts if the economy requires it.