The Reserve Bank of Australia keeps official interest rates on hold at 2%.

The need for additional interest rate cuts will hinge on both the outlook for inflation and whether regulators led by the Australian Prudential Regulatory Authority succeed in curbing investor lending in Sydney.

With income from commodity exports under pressure, wages growth soft, and governments unable or unwilling to spur infrastructure spending, many analysts believe pressure will again increase on the Reserve Bank to deliver extra rate cuts over the coming year.

Source: Financial Review