RBA Rate Unchanged at 1.5% as expected

The Reserve Bank has kept its cash rate on hold at a record low of 1.5%.

RBA Governor Philip Lowe said the recent increase in the Australian dollar above US80 cents was hurting job creation and economic activity.

The Reserve Bank has kept its cash rate on hold at a record low of 1.5%.

reserve bank of australiaRBA statement : “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.”

With regard to the current level of rates and the value of the Aussie, the RBA added: “The Australian dollar has appreciated recently, partly reflecting a lower US dollar. The higher exchange rate is expected to contribute to subdued price pressures in the economy. It is also weighing on the outlook for output and employment. An appreciating exchange rate would be expected to result in a slower pick-up in economic activity and inflation than currently forecast.”

Full Statement by Philip Lowe, Governor: Monetary Policy Decision

 

side by side statement comparrison via @Westpacmarkets

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