RBA keeps rates steady at 0.10% in July, plans third round of QE

Dhwani Mehta FXStreet

The Reserve Bank of Australia (RBA) board members announced a no change to the official cash rate (OCR), leaving it at a record low of 0.10% at their July monetary policy meeting,

The central bank said that it will keep yield curve target at April 2024 bond and not extend to November 2024 line.

Markets widely expected the RBA to keep the April 2024 target for the time being.

The RBA announced that it plans a third round of bond buying.

FX implications

The AUD/USD pair whipsawed on the RBA decision.

The spot was last seen trading near weekly highs of 0.7571, up 0.57% on the day.

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.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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