RBA keeps rate unchanged, AUD may complicate adjustment in economy

By FXStreet As widely expected, the Reserve Bank of Australia left the official interest rate unchanged at 2%, noting that at today’s meeting, the Board judged that there were reasonable prospects for continued growth in the economy, with inflation close to target, therefore decided that the current setting of monetary policy remained appropriate.

As per the currency, the RBA said that “the Australian dollar has appreciated somewhat recently, in part, this reflects some increase in commodity prices, but monetary developments elsewhere in the world have also played a role. Under present circumstances, an appreciating exchange rate could complicate the adjustment under way in the economy.”

Statement by Glenn Stevens, Governor: Interest Rate Decision

At its meeting today, the Board decided to leave the cash rate unchanged at 2.0 per cent.

Recent information suggests that the global economy is continuing to grow, though at a slightly lower pace than earlier expected. While several advanced economies have recorded improved growth over the past year, conditions have become more difficult for a number of emerging market economies. China’s growth rate has continued to moderate.

Commodity prices have generally increased a little recently, but this follows very substantial declines over the past couple of years. Australia’s terms of trade remain much …read more

Source:: FX Street