It’s not what Australia’s central bank said in its monetary policy statement this week, but what it didn’t say that appears to be causing a stir.
The Reserve Bank of Australia (RBA) on Tuesday left its benchmark interest rate steady at 2.5 percent and did not comment about the outlook for the economy in its policy statement. Its tone was less dovish than expected, fueling talk that the rate-cutting cycle that began in late 2011 is close to ending.
Strategists say the RBA’s statement helps explain why the Australian dollar rose more than 1 percent against the U.S. dollar on Tuesday. The Aussie dollar stood at about 94 U.S. cents on Wednesday, up more than 6 percent from a three-year low set in August.
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