RBA keeps rates at 50-year low

The Reserve Bank of Australia has kept the cash rate unchanged for a sixth straight month after meeting for the third time in 2014.

The decision to leave the rate at a record low of 2.5 percent was fully expected.

"Financial conditions overall remain very accommodative," Reserve Bank Governor Glenn Stevens said in a statement. "Long-term interest rates and most risk spreads remain low."

"Equity and credit markets are well placed to provide adequate funding, though for some emerging market countries conditions are considerably more challenging than they were a year ago."

Late last year Stevens said he'd prefer a fall in the value of the Australian dollar over lower interest rates as a means to lift the local economy.

The Australian dollar edged slightly lower on the announcement, to 92.7 US cents, well below the highs of recent years.

"Looking ahead, continued accommodative monetary policy should provide support to demand, and help growth to strengthen over time," Stevens said.

"Inflation is expected to be consistent with the 2–3 per cent target over the next two years."