RBA holds key rate at a record low of 0.25%, AUD/USD keeps 0.7400
|At its September monetary policy meeting this Tuesday, the Reserve Bank of Australia (RBA) board members kept the official cash rate (OCR) unchanged at a record low of 0.25%, as widely expected.
“The board decided to maintain the targets for the cash rate and the yield on 3-year Australian government bonds of 25 basis points,” the statement read.
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
The RBA status-quo failed to move the Australian dollar, with the AUD/USD pair holding the higher ground above the 0.7400 mark.
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