2 Jul 2013
RBA on hold: retains dovish rhetoric, AUD still too high
FXstreet.com (Barcelona) - The RBA interest rate decision was announced without surprise, with the Central Bank keeping the benchmark interest rate at 2.75%.
RBA keeps dovish rhetoric
On the monetary policy statement, the RBA retained its dovish bias by reminding the market that "It decided that the stance of monetary policy remained appropriate for the time being, yet the Board also judged that the inflation outlook, as currently assessed, may provide some scope for further easing, should that be required to support demand." The RBA also stated that "the easier financial conditions now in place will contribute to a strengthening of growth over time, consistent with achieving the inflation target."
AUD still at high levels
According to the RBA: "The Australian dollar has depreciated by around 10 per cent since early April, although it remains at a high level. It is possible that the exchange rate will depreciate further over time, which would help to foster a rebalancing of growth in the economy." Follwoing this statement on the value of the AUD, Greg McKenna, CEO at GlobalFX, said " I'll add rates will be cut further."
RBA keeps dovish rhetoric
On the monetary policy statement, the RBA retained its dovish bias by reminding the market that "It decided that the stance of monetary policy remained appropriate for the time being, yet the Board also judged that the inflation outlook, as currently assessed, may provide some scope for further easing, should that be required to support demand." The RBA also stated that "the easier financial conditions now in place will contribute to a strengthening of growth over time, consistent with achieving the inflation target."
AUD still at high levels
According to the RBA: "The Australian dollar has depreciated by around 10 per cent since early April, although it remains at a high level. It is possible that the exchange rate will depreciate further over time, which would help to foster a rebalancing of growth in the economy." Follwoing this statement on the value of the AUD, Greg McKenna, CEO at GlobalFX, said " I'll add rates will be cut further."