RBA keeps rate unchanged, scope for further easing if needed

By FXStreet FXStreet (Bali) – As widely expected, the Reserve Bank of Australia left the official interest rate unchanged at 2%, noting that scope for further easing exists if needed, while adding that monetary policy needs to be accommodative as low rates keep supporting demand.

As per the AUD, the RBA said that it continues to adjust to significant declines in commodity prices. The RBa also notes that there are reasonable prospects for continued growth, and that expansion in non-mining parts of the economy strengthened during 2015.

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 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 declined further, especially oil prices. This partly reflects slower growth in demand but also very substantial increases in supply over recent years. The decline in Australia’s terms of trade, which began more than four years ago, has therefore continued.

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Source:: FX Street