RBA leaves rates on hold at 2%, AUD adjusting to evolving economic outlook

By FXStreet The RBA kept its cash rate on hold at 2% as expected, providing yet again another neutral view on rates, while noting that the exchange rate has been adjusting to the evolving economic outlook.

In its policy statement, the RBA concluded: “At today’s meeting, the Board judged that there were reasonable prospects for continued growth in the economy, with inflation close to target. The Board therefore decided that the current setting of monetary policy remained appropriate.”

RBA added: “Over the period ahead, new information should allow the Board to judge whether the improvement in labour market conditions is continuing and whether the recent financial turbulence portends weaker global and domestic demand. Continued low inflation would provide scope for easier policy, should that be appropriate to lend support to demand.”

Statement by Glenn Stevens, Governor: Monetary Policy Decision

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 declined very substantially over the past couple of years. This partly reflects slower growth …read more

Source:: FX Street