THE Reserve Bank has kept the official cash rate on hold at 2 per cent in its first meeting of the year, but economists are tipping further cuts in the coming months.

The central bank last moved in May 2015, when it cut the official cash rate by 25 basis points to its historic low, following an earlier cut in February.

In his statement, RBA Governor Glenn Stevens said low interest rates were supporting demand, while tougher lending standards were helping to contain risks in the housing market.

“The pace of growth in dwelling prices has moderated in Melbourne and Sydney over recent months and has remained mostly subdued in other cities,” Governor Stevens said.

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