The Reserve Bank of Australia has signalled it is in no rush to cut interest rates again as it kept the official cash rate on hold at a record low 1.75 per cent in June, sending the Australian dollar soaring.
In a departure from previous language leaving room for more cuts, RBA governor Glenn Stevens said in the statement accompanying Tuesday’s decision that holding the stance of policy unchanged at this meeting would be consistent with sustainable growth in the economy and inflation returning to target over time"..
The Australian dollar jumped after the decision as investors adjusted their interest rate expectations. It seems that the RBA is quite comfortable with current policy stance and it is a major shock that may only change current situation.
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