SYDNEY: Australia’s central bank held interest rates steady at the all-time low of 1.75 percent Tuesday.
The Reserve Bank of Australia cut the official cash rate from 2.0 percent last month to spur the economy, but gave little indication of further easing in a statement Tuesday. “The Board judged that holding the stance of policy unchanged at this meeting would be consistent with sustainable growth in the economy and inflation returning to target over time,” Governor Glenn Stevens said.
Lower-than-expected inflation prompted the central bank to make its first rate cut in a year last month, a move seen as keeping a lid on further appreciation in the Australian dollar. The central bank said Tuesday inflation remained “quite low” and was expected to stay that way for some time given subdued growth in labour costs and low cost pressures elsewhere in the world.
The currency rose on the news, climbing from 73.70 US cents a few minutes before the announcement to 74.22 US cents soon after. Australia is enjoying growth which outstrips some of the world’s most advanced economies, and last week defied market forecasts by reporting an annual year-on-year reading of 3.1 percent in the first quarter on the back of strong exports.
During his address at the passing out parade of the Pakistan Air Force at the…
In light of the severe weather conditions in the United Arab Emirates (UAE), Pakistan…
Global investors are eyeing European and emerging market assets to protect themselves from further turbulence…
U.S. central bank officials will conclude their latest two-day policy meeting on Wednesday with a…
Asian stocks sank in holiday-thinned trade Wednesday, tracking a sharp sell-off on Wall Street after…
The Bank of Japan's decision to keep policy unchanged last week gave yen bears plenty…
Leave a Comment