RBA holds interest rates at 1.5 per cent

The Reserve Bank has held its benchmark interest rate at 1.50 per cent to avoid unsettling the patchy economy.

The Reserve Bank. Source: AAP

After two cuts already this year, RBA governor Philip Lowe said it would be best to hold rates steady on Tuesday, citing the patchy labour and housing markets.

"The board judged that holding the stance of policy unchanged at this meeting would be consistent with sustainable growth in the economy and achieving the inflation target over time," Dr Lowe said in a statement.