The Australian dollar has declined noticeably against a rising US dollar, though less so against a basket of currencies. It remains above most estimates of its fundamental value, particularly given the significant declines in key commodity prices. A lower exchange rate is likely to be needed to achieve balanced growth in the economy.
At today’s meeting the Board judged that, having eased monetary policy at the previous meeting, it was appropriate to hold interest rates steady for the time being.
Further easing of policy MAY be appropriate over the period ahead, in order to foster sustainable growth in demand and inflation consistent with the target.
The Board will further assess the case for such action at forthcoming meetings.
AUD Price at posting:
0.0¢ Sentiment: Sell Disclosure: Not Held
