The RBA monetary policy meeting decision and the accompanying statement from Governor Stevens
RBA leaves the cash rate unchanged
Quick headlines from Stevens' statement (via Reuters):
- AUD adjusting to significant declines in key commodity prices
- Monetary policy needs to be accommodative
- Regulatory measures helping to contain housing market risks
- Says scope for further easing if needed
- To continue assessing whether current rate setting effective
- Inflation is low and should remain so
- Prospects for economy have firmed a little
- Says AUD adjusting to lower commodity prices
Key quote:
At today's meeting the Board judged that the prospects for an improvement in economic conditions had firmed a little over recent months and that leaving the cash rate unchanged was appropriate at this meeting. Members also observed that the outlook for inflation may afford scope for further easing of policy, should that be appropriate to lend support to demand. The Board will continue to assess the outlook, and hence whether the current stance of policy will most effectively foster sustainable growth and inflation consistent with the target.
Whiplash city for the AUD over the announcement time:
And overall its little changed.
