6 May 2009

RBA hints lower rates possible

1:00 pm on 6 May 2009

The Reserve Bank of Australia left the official target for its Official Cash Rate on hold at 3% after its monthly board meeting on Tuesday.

However, the bank left the way open for another rate cut if conditions worsen more than expected.

In a statement, the RBA said: "The board will monitor how economic and financial conditions unfold, and how they impinge on prospects for a sustainable recovery in economic activity."

A quarterly monetary policy statement will be issued on Friday.