Australia's inflation below central bank target

Australia's inflation rate is staying below the central bank's two-percent-to-three-percent target, TD Securities said on Monday.

TD Securities is a Canadian investment bank and financial services provider that offers advisory and capital market services to corporate, government, and institutional clients worldwide.

Australian consumer prices were up 0.1 percent in August, following a 0.2 percent rise in July, showing the annual rate of inflation was 1.7 percent in August, Xinhua reported.

TD Securities head of Asia Pacific research Annette Beacher, however, expects the Reserve Bank of Australia (RBA) to keep its cash rate unchanged despite inflation staying below the central bank's target band.

The RBA will hold its monthly board meeting on Tuesday and it is widely expected to keep the cash rate at a record low of two percent, where it has stood since May, despite weak domestic investment figures and global market volatility.