Interest Rates on Hold At 2.0 per cent For July – Glenn Stevens, Governor RBA
In the first meeting of RBA in this financial year, the board decided to leave the cash rate unchanged to 2.0 per cent for July month.
This decision was widely expected as the bank have left the cash rate to historically low of 2.0 per cent in the May month.
As we can see that the Australian dollar declined to six year low in these days, so according to Mr Stevens, further depreciation seems both likely and necessary.The Australian dollar traded little changed at around US74.73c after the announcement.
In the statement Glenn Stevens said, “The Board today judged that leaving the cash rate unchanged was appropriate at this meeting. Information on economic and financial conditions to be received over the period ahead will inform the Board’s assessment of the outlook and hence whether the current stance of policy will most effectively foster sustainable growth and inflation consistent with the target”.
The board signaled for further easing of monetary policy as some sectors showing a sign of recovery. All we can do is to wait for the next RBA meeting and watch how the RBA will judge the monetary policy in coming months.
News Source: http://www.rba.gov.au/media-releases/2015/mr-15-11.html