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Philip Lowe said in a statement. The decision to hold rates comes despite a recent wobble in the resource-rich economy. The first contraction in gross domestic product in five years generated concerns about lost momentum in growth. While recent trade data suggest the economy may be faring better than feared, evidence of a slowdown is visible in the job market, where full-time creation was flat through 2016. The unemployment rate edged up to 5.8 in December from 5.6% midyear. Inflation also remains well below a desired 2-3% target range despite recent rises. Still, cutting interest rates would threaten to fuel house price growth, which remains strong in the bigger property markets of Sydney and Melbourne, adding to already record levels of household debt. House prices in Sydney rose by 15% in 2016 and have nearly doubled since 2012 amid a surge of foreign demand and investor buying. Australia's household debt-to-disposable income ratio is rising and now stands at a historical high of almost 190%. The issue has registered with the RBA, which has signaled in recent months that it won't cut interest rates simply to drive inflation higher.