Australia RBA Interest Rate Decision below forecasts (2.5%): Actual (2.25%)

The Reserve Bank of Australia decided to cut the interest rate to a new record-low of 2.25% vs 2.5% prior, after strong speculation that the Central Bank would probably act amid global deflationary pressures. On the policy statement, a softer language was observed, noting that "at today's meeting, taking into account the flow of recent information and updated forecasts, the Board judged that, on balance, a further reduction in the cash rate was appropriate." As per the RBA's stance on the AUD, Stevens noted: "A lower exchange rate is likely to be needed to achieve balanced growth in the economy."