Investing.com – The Reserve Bank of Australia kept its benchmark interest rate unchanged in February, confounding expectations for a third successive rate cut, it announced on Tuesday.
In a statement, the RBA said it keeping its benchmark interest rate unchanged at 4.25% in February, confounding expectations for a cut to 4.0%.
The central bank had lowered rates in the past two consecutive meetings.
In its accompanying rate statement, RBA Governor Glenn Stevens said, “With growth expected to be close to trend and inflation close to target, the board judged that the setting of monetary policy was appropriate for the moment.”
The statement continued, “Much remains to be done to put European sovereigns and banks on a sound footing, but some progress has been made.”
“Information on the Australian economy continues to suggest growth close to trend, with differences between sectors,” Stevens added.
Following the decision, the Australian dollar was sharply higher against its U.S. counterpart, with AUD/USD jumping 0.92% to trade at 1.0813.
In a statement, the RBA said it keeping its benchmark interest rate unchanged at 4.25% in February, confounding expectations for a cut to 4.0%.
The central bank had lowered rates in the past two consecutive meetings.
In its accompanying rate statement, RBA Governor Glenn Stevens said, “With growth expected to be close to trend and inflation close to target, the board judged that the setting of monetary policy was appropriate for the moment.”
The statement continued, “Much remains to be done to put European sovereigns and banks on a sound footing, but some progress has been made.”
“Information on the Australian economy continues to suggest growth close to trend, with differences between sectors,” Stevens added.
Following the decision, the Australian dollar was sharply higher against its U.S. counterpart, with AUD/USD jumping 0.92% to trade at 1.0813.