RBA Signals Rates to Remain Steady For Now

The Reserve Bank of Australia (RBA) held interest rates steady at record low 1.5 percent on Tuesday, as expected, and appeared to signal it would remain on hold for some time.

The RBA said that it expected the economy Down Under would grow around 3 percent annually for “the next couple of years” and that inflation would pick up to above its 2 percent target over the course of this year.

“There is no longer an expectation of further monetary easing in other major economies,” the statement on Tuesday said. “The board judged that holding the stance of policy unchanged at this meeting would be consistent with sustainable growth in the economy and achieving the inflation target over time.”

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Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.