RBA leaves interest rates on hold at record low of 1.5 percent

The Reserve Bank of Australia has left interest rates on hold at a record low 1.5 percent for the 16th straight month.

The RBA's next board meeting is scheduled for February, with rates to stay on hold until into the new year.

The RBA board said business confidence and investment were showing positive signs but singled out stagnant household spending as one of the key reasons for keeping the official cash rate at the record low.

The Australian dollar barely reacted to the decision and was at 76.4 US cents at 2.40pm AEDT.