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Reserve Bank of Australia leaves interest rate unchanged

Published 07/05/2011, 02:18 AM
AUD/USD
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Investing.com – The Reserve Bank of Australia kept its benchmark interest rate unchanged for the seventh straight meeting in July, it announced on Tuesday.

In a statement, the RBA said it was keeping its benchmark interest rate unchanged at 4.75%, broadly in line with expectations.

In its accompanying rate statement the RBA said that growth through 2011 was now unlikely to be as strong as earlier forecast. It also said inflation has been in the bottom half of its target range.

The statement added that the policymakers judged that the current mildly restrictive stance of monetary policy remained appropriate. In future meetings, the Board will continue to assess carefully the evolving outlook for growth and inflation.

Following the decision, the Australian dollar was down against its U.S. counterpart, with AUD/USD shedding 0.52% to trade at 1.0678.

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