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Why the Reserve Bank defied the economic doomsayers on interest rates

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Phil Lowe is not for turning.

Australia's Iron Man of monetary policy has defied the economic doomsayers urging him to cut interest rates, holding the line he has maintained consistently since taking the helm at Australia's central bank almost three years ago.

RBA Governor Philip Lowe's determination to keep rates on hold should be seen as an expression of hope.Credit:Bloomberg

Namely: keep rates at record lows and it's only a matter of time before the economy responds to the monetary medicine.

Problem is, the patient's been on the floor for a while now, displaying only tepid wages and price growth.

But – crucially - there's still a pulse.

Australia's economic heartbeat may have slowed in recent times, but our jobs........

© The Age