The RBA has left interest rates on hold at 0.1 per cent, saying that while it was monitoring the housing market and economic recovery it remains committed to its current policy settings.

“These various monetary measures are continuing to help the economy by keeping financing costs very low, contributing to a lower exchange rate than otherwise, and supporting the supply of credit and household and business balance sheets. Together, monetary and fiscal policy are contributing to the recovery in aggregate demand and the pick-up in employment,” RBA Governor Philip Lowe wrote.

Governor Lowe has signalled that interest rates are unlikely to rise for several years.