Australia's central bank held its benchmark cash rate steady at 2.50 percent, as expected, and reiterated that "the most prudent course is likely to be a period of stability in interest rates."
The Reserve Bank of Australia (RBA), which has maintained its rate since August 2013, said continued accommodative monetary policy should support demand and help economic growth strengthen over time while inflation is expected to remain in line with the bank's 2 -3 percent target.
The RBA's guidance that rates are likely to remain unchanged for some time was the same as it gave in February and March and its statement today also largely mirrored last month's view of the prospects for Australia's economy.
The exchange rate of the Australian dollar - known as the Aussie - is still considered "high by historical standards," and the RBA voiced concern over the recent rise in the exchange rate following a drop over in the last year.
"The decline in the exchange rate from its highs a year ago will assist in achieving balanced growth in the economy, but less so than previously as a result of the rise over the past few months," the RBA quoted its governor, Glenn Stevens as saying.
The Aussie weakened sharply from May through August last year, falling from around 1.05 to the U.S. dollar to 0.89 by August 30. It then gained strength through October before again falling to a low of below 0.87 to the dollar in late January this year.
But in the last two months it has started appreciating again, trading at 0.92 to the dollar earlier today.
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The Reserve Bank of Australia (RBA), which has maintained its rate since August 2013, said continued accommodative monetary policy should support demand and help economic growth strengthen over time while inflation is expected to remain in line with the bank's 2 -3 percent target.
The RBA's guidance that rates are likely to remain unchanged for some time was the same as it gave in February and March and its statement today also largely mirrored last month's view of the prospects for Australia's economy.
The exchange rate of the Australian dollar - known as the Aussie - is still considered "high by historical standards," and the RBA voiced concern over the recent rise in the exchange rate following a drop over in the last year.
"The decline in the exchange rate from its highs a year ago will assist in achieving balanced growth in the economy, but less so than previously as a result of the rise over the past few months," the RBA quoted its governor, Glenn Stevens as saying.
The Aussie weakened sharply from May through August last year, falling from around 1.05 to the U.S. dollar to 0.89 by August 30. It then gained strength through October before again falling to a low of below 0.87 to the dollar in late January this year.
But in the last two months it has started appreciating again, trading at 0.92 to the dollar earlier today.
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by InformedTrades via InformedTrades
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