RTTNews reports that Australia's central bank retained its interest rate at a historic low and quantitative easing unchanged as expected ahead of the federal budget announcement later today.

The board of Reserve Bank of Australia decided to maintain cash rate and the targeted yield on three-year government bonds of 25 basis points. The board also retained the parameters for the expanded Term Funding Facility.

The board viewed addressing the high rate of unemployment as an important national priority.

The RBA said that the unemployment rate is likely to peak at a lower rate than earlier expected. Nonetheless, unemployment and underemployment are set to remain high for an extended period. Wage and inflation pressures remained very subdued.

The bank reiterated that it will maintain highly accommodative policy settings as long as is required and will not increase the cash rate target until progress is being made towards full employment and it is confident that inflation will be sustainably within the 2-3 percent target band.