The Reserve Bank has held the cash rate at a record low 1.0 per cent as it continues to monitor the effect of cuts in June and July.

The decision at Tuesday’s monthly board meeting was widely expected by economists after the RBA repeatedly signalled it wanted to see whether its twin 0.25 percentage point cuts had been enough to stimulate economic growth.

Expectations of an October cut have been growing, however, after dismal construction, retail and import data.

At its meeting today, the Board decided to leave the cash rate unchanged at 1.00 per cent – https://t.co/aueUmpLaqa

— RBA (@RBAInfo) September 3, 2019

In his statement, RBA governor Philip Lowe repeated the board’s view that a prolonged period of low rates was on the cards and indicated that further cuts remained on the table.

“The board will continue to monitor developments, including in the labour market, and ease monetary policy further if needed to support sustainable growth,” Dr Lowe said.

The Australian dollar spiked from 66.94 to 67.10 US cents after the decision and was worth 67.04 by 1440 AEST.

-AAP