RBA leaves interest rates on hold at two per cent

The Reserve Bank of Australia has left the official cash rate on hold at two per cent.

(AAP) Source: AAP

The Reserve Bank has left the cash rate at a record low of two per cent for a sixth straight month, but it seems more willing to consider a cut than in previous months.

RBA governor Glenn Stevens says while the prospects for an improvement in economic conditions had firmed, a rate cut could be on the cards down the track.

"The outlook for inflation may afford scope for further easing of policy, should that be appropriate to lend support to demand," he said in a statement after the RBA's monthly board meeting on Tuesday.

September quarter figures out last week show that inflation for the year to September was 1.5 per cent, well below the RBA's two to three per cent target band.