As expected the Reserve Bank of Australia has left the official cash rate target unchanged at 2%
- Says AUD adjusting to lower commodity prices
- Says monetary policy needs to be accommodative
- Economy likely to be operating with degree of space capacity for some time
- Says inflation seen remaining consistent with target over next one to two years
quick Headlines via Reuters
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Full text: Statement by Glenn Stevens, Governor: Monetary Policy Decision
The final paragraph of Stevens' statement:
- The Board today judged that leaving the cash rate unchanged was appropriate at this meeting.
- Further information on economic and financial conditions to be received over the period ahead will inform the Board's ongoing assessment of the outlook and hence whether the current stance of policy will most effectively foster sustainable growth and inflation consistent with the target.
Translation ... RBA is in wait and see mode.
As I pointed out earlier, the bank will issue revised forecasts at the next meeting (November), so that's more likely to be an interesting meeting.
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AUD is 30-odd points higher. A few stops above the figure done. there are more above 0.7120 that'll be in focus pretty soon. 0.7118 and thereabouts the high I've seen, so a few sellers to chew through first.
