Australia should keep further interest rate cuts "in reserve" – OECD warns

FXStreet (Mumbai) - The Organisation for Economic Cooperation and Development (OECD) warned in its latest economic report on Australia to keep further interest rate cuts "in reserve" as the country's housing market could be at risk of a "sharp correction".

Australia's key interest rate is now at a record low following the Reserve Bank of Australia's (RBA) decision in May to reduce its benchmark interest rate by 25 basis points to a record low of 2%. The RBA kept its policy rate unchanged at a record low on June 2 again.