RBA holds interest rate at 1.5%

The Reserve Bank of Australia has held the cash rate steady, signalling it is less concerned about the growth of household debt and low inflation.

The RBA held the cash rate steady for a ninth consecutive month at 1.5 per cent at its May board meeting today, with RBA governor Philip Lowe noting headline inflation had returned to the central bank's 2 to 3 per cent target band in the March quarter, and that new regulatory steps to contain property lending growth should help ease concerns about household debt. 

"The recently announced supervisory measures should help address the risks associated with high and rising levels of indebtedness," Dr Lowe said in a statement.

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