Investing.com – The Reserve Bank of Australia announced that it had left its benchmark interest rate unchanged for the third consecutive month, late Monday.
The bank kept the benchmark interest rate at 4.5% for August, unchanged from the previous month, in a move that was in line with expectations.
In a statement, the bank said that pressure on house prices, less “caution” in financial markets and an outlook for Australian economic growth that’s “about trend” were the main factors in its decision.
Commenting on the decision, central bank Governor Glenn Stevens said, “The caution evident in financial markets in the past few months has abated of late, helped by the disclosure of information about European banks."
He added, “Nonetheless, the global outlook remains somewhat more uncertain than a few months ago and this is reflected in the volatility of financial prices.”
Following the decision the Australian dollar was down against its U.S. counterpart, with AUD/USD shedding 0.61% to hit 0.9082.
The bank kept the benchmark interest rate at 4.5% for August, unchanged from the previous month, in a move that was in line with expectations.
In a statement, the bank said that pressure on house prices, less “caution” in financial markets and an outlook for Australian economic growth that’s “about trend” were the main factors in its decision.
Commenting on the decision, central bank Governor Glenn Stevens said, “The caution evident in financial markets in the past few months has abated of late, helped by the disclosure of information about European banks."
He added, “Nonetheless, the global outlook remains somewhat more uncertain than a few months ago and this is reflected in the volatility of financial prices.”
Following the decision the Australian dollar was down against its U.S. counterpart, with AUD/USD shedding 0.61% to hit 0.9082.