Australia’s central bank kept interest rates steady for the 10th policy meeting in a row on Tuesday, and seemed set to stay on the sidelines for some time to come as the economy weathers a cooling down in mining investment.
The local dollar hopped higher as the Reserve Bank of Australia (RBA) stopped short of actively trying to talk the currency lower, noting only that it was high by historical standards and thus not as helpful in supporting the economy.
“Looking ahead, continued accommodative monetary policy should provide support to demand and help growth to strengthen over time,” stated RBA Governor Glenn Stevens, in what has become a monthly mantra.
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