Investing.com – The Reserve Bank of Australia kept its benchmark interest rate unchanged for the eleventh straight meeting in October, 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 it judged that it was prudent to maintain the current stance of monetary policy, citing the uncertain global outlook.
“Conditions in global financial markets have continued to be very unsettled, with uncertainty increasing about both the prospects for resolution of the sovereign-debt and banking problems in Europe, and the outlook for global economic growth.”
“Moreover, the uncertainty and financial volatility have reduced confidence, which could result in more cautious behavior by firms and households in major countries.”
The statement added that the current cash rate “remained appropriate” and that 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 slumping 0.7% to trade at 0.9594.
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 it judged that it was prudent to maintain the current stance of monetary policy, citing the uncertain global outlook.
“Conditions in global financial markets have continued to be very unsettled, with uncertainty increasing about both the prospects for resolution of the sovereign-debt and banking problems in Europe, and the outlook for global economic growth.”
“Moreover, the uncertainty and financial volatility have reduced confidence, which could result in more cautious behavior by firms and households in major countries.”
The statement added that the current cash rate “remained appropriate” and that 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 slumping 0.7% to trade at 0.9594.