Tuesday, December 2, 2014

Minimal changes to RBA statement

The Reserve Bank of Australia (RBA) decided to leave the cash rate unchanged at 2.5%.

There are only tiny changes to the statement compared to the one issued last month. The key points are:

- Economic policies have responded in a way to support growth in the property market.
- Growth to be a little below trend for the next several quarters.
- Australian dollar remains above its fundamental value.

Traders should take caution of the final line as a lower exchange rate is likely to be needed to achieve balanced growth in the economy.

The statement can be obtained here.

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