Investing.com - The Reserve Bank of Australia kept its cash rate steady at a record low 2.5% on Tuesday in its November review as expected, adding that the Australian dollar remains uncomfortably high and it would assess its outlook and adjust policy as needed.
The RBA has trimmed the cash rate by a total of 225 basis points since an easing cycle that began in November 2011, but there is continued speculation whether the easing is over because of a persistently strong Australian dollar in the central bank's view.
"The Australian dollar, while below its level earlier in the year, is still uncomfortably high. A lower level of the exchange rate is likely to be needed to achieve balanced growth in the economy," Governor Glenn Stevens said in the statement announcing the rate decision.
The Australian dollar had fallen nearly 4.0 cents in the past month.
The RBA reiterated it expects inflation to remain consistent with the medium-term trend over the next one to two years
The RBA has trimmed the cash rate by a total of 225 basis points since an easing cycle that began in November 2011, but there is continued speculation whether the easing is over because of a persistently strong Australian dollar in the central bank's view.
"The Australian dollar, while below its level earlier in the year, is still uncomfortably high. A lower level of the exchange rate is likely to be needed to achieve balanced growth in the economy," Governor Glenn Stevens said in the statement announcing the rate decision.
The Australian dollar had fallen nearly 4.0 cents in the past month.
The RBA reiterated it expects inflation to remain consistent with the medium-term trend over the next one to two years