Australia’s central bank leaves cash rate unchanged at 1.5%
Australia’s Reserve Bank of Australia’s board decided to leave the cash rate unchanged at 1.5% as widely expected
The RBA’s decision was widely expected among analysts, since policy makers signaled a steady outlook for the near term.
The RBA’s decisions to leave the cash rate on hold indicates the RBA is maintaining a neutral balance.
This month’s monetary statement seems to be relatively unchanged from last month, as there seems to be no new information added to RBA Governor Stevens speech.
The RBA’s policy stated there has been a significant increase in employment with the unemployment rate is at 5%, but a further decline in the unemployment rate to 4 3/4 per cent is expected over the next couple of years.
RBA Governor Philip Lowe indicated that the board is considering a near-term reduction.
Lowe said, ’The low level of interest rates is continuing to support the Australian economy,' This is the same line that’s been featured in past statements.
'Taking account of the available information, the Board judged that holding the stance of monetary policy unchanged at this meeting would be consistent with sustainable growth in the economy and achieving the inflation target over time.' Lowe said. Another line repeated in past statements.
Australian Dollar price
The Australian dollar edged higher after the RBA statement was released. AUD/USD trading to $0.7085 from around $0.7075 before the RBA decision.
Analysts predict AUD/USD is unlikely to rally too far ahead of Wednesday’s Q4 Australian GDP.
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