The Reserve Bank left interest rates at record lows for a third straight month but indicated it has room to make further cuts if necessary.

After a meeting of the central bank’s board, the RBA left its cash rate at 3 per cent, a 49-year low - the same rate that has applied since its last cut in April, which was made in response to a slowdown in the economy.

”It looks as if the RBA is on hold for the longer term,” said Matt Robinson of Moody’s Economy.com. ”There is no real need or desire for further easing.”

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