The Reserve Bank of Australia monetary policy decision (7 July 2015)
Rates left on hold at 2%
- Lower AUD likely
Monetary policy needs to be accommodative
Leaving cash rate unchanged appropriate
Still assessing whether policy effective
Inflation to remain consistent with target
Home prices rising strongly in Sydney, more varied elsewhere
Quick headlines via Reuters
Accompanying statement from Governor Glenn Stevens:Statement by Glenn Stevens, Governor: Monetary Policy Decision
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No change to rates and little change to communication
AUD had a wiggle but is little changed from the lead up to the decision, a few tics stronger as I update, around 0.7483
With AUD/USD at multi-year lows below 0.75 'twas probably an opportunity for Glenn Stevens to be a little more forceful with words expressing his desire for a lower currency still ... but not to be.
He said:
- Further depreciation seems both likely and necessary, particularly given the significant declines in key commodity prices
But he often says something like that. Yawn.
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So, back to the charts ....below 0.75 AUD looks heavy.