RBA Still Believes Australian Dollar is High

Australia’s central bank kept interest rates at record lows for a 13th straight policy meeting on Tuesday, saying the economy was to run a little below par for some time yet.  The local dollar eased a touch after the Reserve Bank of Australia (RBA) reiterated that the currency was still high by historic standards, even though it has fallen sharply in the past month.

“Overall, the Bank still expects growth to be a little below trend for the next several quarters,” said RBA Governor Glenn Stevens, in what was largely a re-run of recent statements.  “On present indications, the most prudent course is likely to be a period of stability in interest rates.”

There had been some speculation it might drop the reference to a period of stability given rates have already been at 2.5 percent for over a year.  Interbank futures <0#YIB:> had priced in no chance of a move this week, while a Reuters poll of 18 analysts had found all expected rates to st


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