Tuesday, July 7, 2009

No Change for Australia Cash Rate

The major economic event for today is RBA`s meeting and announced decision on its interest rate. The Reserve Bank of Australia (RBA) left its key cash rate at a record low of 3.0 percent and also noted that the domestic economy was not as weak as expected just a few months ago and saw first signals of stabilization in Australia`s economy.

For a third straight month the RBA did not change the interest rate level. The RBA has maintained official interest rates at the lowest point for 49-year period of 3 percent, amid signals that the world economy is stabilizing and that Australia`s inflation will continue to decline. According to Glenn Stevens, RBA governor, the board's current view is that the outlook for inflation allows some scope for further easing of monetary policy.

According to many market analyses prior the RBA meeting the rate was to remain at the same point till the end of 2009.

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