Reserve Bank of Australia left interest rates unchanged
The Reserve Bank of Australia decided to keep the benchmark interest rate and leave it at a record low of 1.5%, which corresponds to the experts' forecasts. This decision has immediately affected on the Australian dollar rate, that during today's trading fell by 0.4% in pair with the U.S. dollar.
The Central Bank’ of Australia decision to leave the interest rates unchanged is mainly dictated by real estate prices rapidly rising in Australia's major cities, particularly with regard to Melbourne and Sydney. Weak reports on employment had also affected the regulator's decision to refrain from monetary policy tightening.
Representatives of the Reserve Bank of Australia noted, that due to low interest rates, the national economy was supported and moderate GDP growth is indicated. Also, the Central Bank expects, that inflation will gradually increase to the desired level.