CANBERRA, AAP – The Reserve Bank has left interest rates unchanged at a record low in its first board meeting of the year.

The central bank’s key cash rate has been 0.1 per cent since November last year.

“The economic recovery is well under way and has been stronger than was earlier expected,” Reserve Bank governor Philip Lowe said in his post-meeting statement on Tuesday.

But he reiterated the board will not increase the cash rate until actual inflation is sustainably within the two to three per cent target range.

The Reserve Bank’s three-yield bond target rate, that aims to keep short-term market interest rates low, and its term funding facility for banks, were also kept at 0.1 per cent.