Reserve Bank of Australia December monetary policy board meeting announcement

  • NO CHANGE in the cash target rate, as widely (unanimously) expected
  • Cash rate left at 2%, where its been since May this year

Headline summary of the accompanying Statement by RBA governor Glenn Stevens:

  • Room for further policy easing if needed
  • Says AUD adjusting to declines in commodity prices
  • Says inflation is low and should remain so
  • Judged economic outlook had firmed a little
  • Policy needs to be accommodative
  • Says inflation should remain low
  • Low rates supporting borrowing and spending
  • Information suggests moderate expansion in economy continues

Headlines via Reuters

well, I reckon that comment on the AUD is pretty weak ... not overtly talking it down. Will Stevens regret not being more forceful expressing a desire for it to fall further? I reckon he will. (He speaks tomorrow; Wednesday Australian time, 0030GMT). Still, its done now ... AUD/USD back nearly on session high

more to come


Full text of Mr. Stevens' Statement: Statement by Glenn Stevens, Governor: Monetary Policy Decision