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Australia's central bank kept its key interest rate unchanged at a record low, as widely expected, on Tuesday.
The policy board of the Reserve Bank of Australia headed by Governor Philip Lowe decided to maintain its cash rate target at 0.10 percent.
Inflation has picked up and a further increase is expected, but growth in labor costs has been below rates that are likely to be consistent with inflation being sustainably at target, the bank noted.
Over coming months, important additional evidence will be available to the Board on both inflation and the evolution of labour costs, Lowe said.
The Board will assess this and other incoming information as its sets policy to support full employment in Australia and inflation outcomes consistent with the target.
