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RBA announces no policy change, as expected (+ Governor Stevens comments)

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

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

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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