Breaking: RBA cuts Official Cash Rate by 25 bps to 0.50%, AUD/USD jumps
|At its March monetary policy meeting on Tuesday, the Reserve Bank of Australia (RBA) cut its official cash rate (OCR) by 25bps to a record low of 0.50%, as they weighed in the coronavirus outbreak risks.
According to the latest Reuters poll, a majority of the 35 economists polled expected the central bank to maintain the status quo.
About RBA rate decision
RBA Interest Rate Decision is announced by the Reserve Bank of Australia. If the RBA is hawkish about the inflationary outlook of the economy and rises the interest rates it is positive, or bullish, for the AUD. Likewise, if the RBA has a dovish view on the Australian economy and keeps the ongoing interest rate, or cuts the interest rate it is seen as negative, or bearish.
FX implications
Despite the surprise rate cut decision by the RBA, the Australian dollar caught a fresh bid-wave and jumped nearly 30-pips, driving the AUD/USD pair back to 0.6570 region.
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