Reserve keeps rate stable amid warning signs The Reserve Bank avoided a second intervention in the election campaign when it left interest rates unchanged at 60-year lows on Tuesday. But a post-election cut remains a possibility following fresh evidence that consumer spending is weak. Political combat over interest rates flared last month when the Reserve cut the official cash rate to 2.5 per cent during the early stages of the campaign. But Reserve governor Glenn Stevens said on Tuesday that the level of official interest rate was now "appropriate" even though economic growth was likely to be a bit below trend in the near term. He said recent rate reductions had "supported interest-sensitive spending and asset values" and predicted the effects of these cuts would be more apparent over time. The Reserve has reduced the official interest rate by 2.25 percentage points since November 2011 in a bid to offset slowing economic growth. Mr Stevens said the Australian dollar "remains at a high level" despite depreciating 15 per cent against the US dollar since early April. Super-low interest rates have not yet triggered a revival in consumer spending. New figures show Australian retail turnover rose just 0.1 per cent in July, seasonally adjusted, following a flat result in June. Modest increases in spending on household goods, food and clothing, footwear and personal accessories were offset by an 8 per cent slump in spending in department stores.