The Reserve Bank of Australia (RBA) met consensus expectations by keeping interest rates on hold at a record low of three per cent.

Australian central bank Governor Glenn Stevens noted that downside risks for the global economy have abated but left the door open to more easing.

"Global growth is forecast to be a little below average for a time, but the downside risks appear to have abated, for the moment at least," Stevens said after the policy meeting.

The RBA chief mentioned in particular the signs of improvement in both China and the US.

Yet Stevens did not rule out the possibility of future easing, noting that the below-trend growth expected for this year justifies an accommodative stance and added that "the inflation outlook, as assessed at present, would afford scope to ease policy further, should that be necessary to support demand."

JM

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