Low and steady

The Reserve Bank voted this week to keep interest rates on hold, leaving the official cash rate at its new historic low level of .75 per cent.

In a statement announcing the decision, Reserve governor Philip Lowe noted that while the outlook for the Australian economy has barely moved over the past three months, it is expected to pick up again.

"The low level of interest rates, recent tax cuts, ongoing spending on infrastructure, the upswing in housing prices in some markets and a brighter outlook for the resources sector should all support growth", he said.