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.
Indications
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.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Explore the markets with our free course
Discover the range of markets and learn how they work - with IG Academy's online course.
Live prices on most popular markets
- Forex
- Shares
- Indices
