Investing.com - The Reserve Bank of Australia held its benchmark interest rate at a record low on Tuesday, in a widely expected decision.
In a statement, the RBA said it was maintaining its benchmark interest rate at 2.5%, in line with market expectations. The RBA cut the key rate by 0.25% in August.
In its accompanying rate statement, RBA Governor Glenn Stevens said the Aussie dollar “rose recently, but is still about 10% below its level in April. A lower level of the currency than seen at present would assist in rebalancing growth in the economy.”
“The Board will continue to assess the outlook and adjust policy as needed to foster sustainable growth in demand and inflation outcomes consistent with the target.”
Following the decision, the Australian dollar spiked higher against its U.S. counterpart, with AUD/USD gaining 0.83% to trade at 0.9400.
Meanwhile, Asian stock markets were mixed, with Australia’s ASX/200 Index shedding 0.25%, Japan’s Nikkei 225 Index rising 0.2%, while Hong Kong's Hang Seng remained closed for a public holiday.
In a statement, the RBA said it was maintaining its benchmark interest rate at 2.5%, in line with market expectations. The RBA cut the key rate by 0.25% in August.
In its accompanying rate statement, RBA Governor Glenn Stevens said the Aussie dollar “rose recently, but is still about 10% below its level in April. A lower level of the currency than seen at present would assist in rebalancing growth in the economy.”
“The Board will continue to assess the outlook and adjust policy as needed to foster sustainable growth in demand and inflation outcomes consistent with the target.”
Following the decision, the Australian dollar spiked higher against its U.S. counterpart, with AUD/USD gaining 0.83% to trade at 0.9400.
Meanwhile, Asian stock markets were mixed, with Australia’s ASX/200 Index shedding 0.25%, Japan’s Nikkei 225 Index rising 0.2%, while Hong Kong's Hang Seng remained closed for a public holiday.