The Reserve Bank of Australia monetary policy decision (7 July 2015)

Rates left on hold at 2%

  • Lower AUD likely
  • Monetary policy needs to be accommodative

  • Leaving cash rate unchanged appropriate

  • Still assessing whether policy effective

  • Inflation to remain consistent with target

  • Home prices rising strongly in Sydney, more varied elsewhere

Quick headlines via Reuters

Accompanying statement from Governor Glenn Stevens:Statement by Glenn Stevens, Governor: Monetary Policy Decision

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No change to rates and little change to communication

AUD had a wiggle but is little changed from the lead up to the decision, a few tics stronger as I update, around 0.7483

With AUD/USD at multi-year lows below 0.75 'twas probably an opportunity for Glenn Stevens to be a little more forceful with words expressing his desire for a lower currency still ... but not to be.

He said:

  • Further depreciation seems both likely and necessary, particularly given the significant declines in key commodity prices

But he often says something like that. Yawn.

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So, back to the charts ....below 0.75 AUD looks heavy.