RBA keeps official cash rate steady at record low

The official interest rate will remain at 2.5 per cent, with the Reserve Bank announcing it will keep rates at the current record low.

It’s almost two years to the day since the Reserve Bank’s board announced a cut of interest rates to 2.5 per cent.

A statement from RBA chief Glenn Stevens said growth was expected to be in line with the 2-3 per cent target range.

"Looking ahead, continued accommodative monetary policy should provide support to demand and help growth to strengthen over time. Inflation is expected to be consistent with the two to three per cent target over the next two years," Mr Stevens said.

The Australian dollar remained steady after the Reserve Bank left the cash rate unchanged at 2.5 per cent.

The RBA's decision was widely expected, and marks 12 months since the last change to the cash rate.

At 2.35pm (AEST), the Australia dollar was at 93.27 US cents, up slightly from 93.26 US cents just before the RBA's decision was announced.