Investing.com - The Reserve Bank of Australia held its benchmark interest rate at a record low on Tuesday, but kept the door open for future cuts, sending the Australian dollar sharply lower.
In a statement, the RBA said it was maintaining its benchmark interest rate at 2.75%, in line with market expectations.
In its accompanying rate statement, RBA Governor Glenn Stevens said the Australian dollar “remains at a high level.”
He added that, “The inflation outlook, as currently assessed, may provide some scope for further easing, should that be required to support demand.”
Following the decision, the Australian dollar was lower against its U.S. counterpart, with AUD/USD shedding 0.74% to trade at 0.9168.
Meanwhile, Asian stock markets were mixed, with Australia’s ASX/200 Index rallying 2.6%, Japan’s Nikkei 225 Index surging 1.8%, while Hong Kong's Hang Seng Index dipped 0.3%.
In a statement, the RBA said it was maintaining its benchmark interest rate at 2.75%, in line with market expectations.
In its accompanying rate statement, RBA Governor Glenn Stevens said the Australian dollar “remains at a high level.”
He added that, “The inflation outlook, as currently assessed, may provide some scope for further easing, should that be required to support demand.”
Following the decision, the Australian dollar was lower against its U.S. counterpart, with AUD/USD shedding 0.74% to trade at 0.9168.
Meanwhile, Asian stock markets were mixed, with Australia’s ASX/200 Index rallying 2.6%, Japan’s Nikkei 225 Index surging 1.8%, while Hong Kong's Hang Seng Index dipped 0.3%.