Reserve Bank of Australia Leaves Cut Option on the Table

Australia’s central bank again left the door open to further interest rate cuts but signaled no urgency to act because there was a substantial amount of policy stimulus already in place.

In minutes of its Oct. 1 meeting, the Reserve Bank of Australia (RBA) also said it was hard to judge the effects of a recent appreciation in the local dollar, partly because it was uncertain whether this would be sustained.

“Given the substantial degree of policy stimulus that had been imparted, it would be prudent to leave the cash rate at the existing low level while continuing to gauge the effects,” the minutes released on Tuesday said.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza