In a decision that appears to have surprised no one, the Reserve Bank of Australia has chosen to keep its policy cash rate at a record-low 2.5%. Likewise, there are very few changes to the accompanying statement from RBA Gov. Glenn Stevens.
And while stocks remain stone-faced in the wake of the RBA announcement, the Australian dollar has climbed a few steps up the ladder, rising to 93.03 U.S. cents from 92.85 U.S. cents moments ahead of the decision.
Perhaps helping boost the Aussie dollar’s fortunes is the fact that the central bank’s comments on inflation are word-for-word what it said last month: “Inflation is expected to be consistent with the 2%–3% target over the next two years.”
And while stocks remain stone-faced in the wake of the RBA announcement, the Australian dollar has climbed a few steps up the ladder, rising to 93.03 U.S. cents from 92.85 U.S. cents moments ahead of the decision.
Perhaps helping boost the Aussie dollar’s fortunes is the fact that the central bank’s comments on inflation are word-for-word what it said last month: “Inflation is expected to be consistent with the 2%–3% target over the next two years.”