Investing.com – The Reserve Bank of Australia kept its benchmark interest rate unchanged for the fifth consecutive month in October, it announced on Tuesday.
In a statement, the RBA said it was keeping its benchmark interest rate unchanged at 4.50% in October.
Economists had expected the RBA to raise its benchmark interest rate to 4.75% in October.
In a statement the bank said, “The board regards this as appropriate for the time being. If economic conditions evolve as the Board currently expects, it is likely that higher interest rates will be required, at some point, to ensure that inflation remains consistent with the medium-term target.”
Commenting on the decision, central bank Governor Glenn Stevens said, “The global economy grew faster than trend over the year to mid 2010, but will probably ease back to about trend pace over the coming year.”
He added, “In Europe and the United States, growth prospects appear to be modest in the near term, a legacy of the financial crisis and its impact on private and public finances. Financial markets are still characterized by a degree of uncertainty, and are responding both to differences in growth outlooks between regions and evident strains on public finances and banking systems in several smaller countries in Europe”.
Following the decision, the Australian dollar was down against its U.S. counterpart, with AUD/USD tumbling 1.34% to hit 0.9553.
In a statement, the RBA said it was keeping its benchmark interest rate unchanged at 4.50% in October.
Economists had expected the RBA to raise its benchmark interest rate to 4.75% in October.
In a statement the bank said, “The board regards this as appropriate for the time being. If economic conditions evolve as the Board currently expects, it is likely that higher interest rates will be required, at some point, to ensure that inflation remains consistent with the medium-term target.”
Commenting on the decision, central bank Governor Glenn Stevens said, “The global economy grew faster than trend over the year to mid 2010, but will probably ease back to about trend pace over the coming year.”
He added, “In Europe and the United States, growth prospects appear to be modest in the near term, a legacy of the financial crisis and its impact on private and public finances. Financial markets are still characterized by a degree of uncertainty, and are responding both to differences in growth outlooks between regions and evident strains on public finances and banking systems in several smaller countries in Europe”.
Following the decision, the Australian dollar was down against its U.S. counterpart, with AUD/USD tumbling 1.34% to hit 0.9553.