Interest rates remain steady on Melbourne Cup day
THE Reserve Bank of Australia has played it safe and opted to keep interest rates steady.
- RBA keeps rates on hold at 3.25 per cent
- Risks to global outlook on the downside: RBA
- The Australian dollar rises above 104 US cent
The official cash rate remains 3.25 per cent.
The move saw the Australian dollar rise above 104 US cents. The currency was trading at 103.69 US cents at 1429 AEDT, just before the decision was announced, and rose to 104.09 US cents by 1439 AEDT.
It finished Monday’s local session at 103.68 US cents.
Futures markets had priced in around a 50 per cent chance of a rate cut.
In a statement accompanying the decision, RBA governor Glenn Stevens says recent inflation data has contributed to the board’s decision.
“At today’s meeting, with prices data slightly higher than expected and recent information on the world economy slightly more positive, the Board judged that the stance of monetary policy was appropriate for the time being,” he said.