AUD/USD at 0.9280 after RBA Leaves Rate Steady

The Reserve Bank of Australia (RBA) on Tuesday left interest rates unchanged at a record low of 2.5 percent, in line with market expectations.  In a statement, the central bank said the Australian dollar remains historically high. The RBA added that it sees a period of stability for interest rates and an improvement in the labor market, although it would be sometime yet before unemployment declines consistently.

The central bank’s decision comes a week before the coalition government is due to hand down its first budget since winning the elections in September last year.

The government has already warned of a tough budget, which will likely include temporary income tax hikes, raising the retirement age and cuts to spending on social services in a bid to trim the country’s deficit.


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