RBA leaves cash rate unchanged at 3.85% in latest policy decision ...Middle East

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RBA leaves cash rate unchanged at 3.85% in latest policy decision
source : forex live ( Middle East ) () 124
Prior 3.85%Inflation has continued to moderateWith the cash rate 50 bps lower than five months ago and wider economic conditions evolving broadly as expected, RBA judges that it could wait for a little more information to confirm that inflation remains on track to reach 2.5% on a sustainable basisThe outlook remains uncertainVarious indicators suggest that labour market conditions remain tightThere are uncertainties about the outlook for domestic economic activityThere are also uncertainties regarding the lags in the effect of recent monetary policy easingMaintaining price stability and full employment is the priorityThe risks to inflation have become more balanced and the labour market remains strongWill be attentive to the data and the evolving assessment of risks to guide its decisionsFocused on mandate to deliver price stability, full employment and will do what is necessary to achieve thatFull statement

The only real surprise is the rate decision itself. For the most part, the policy language remains the same as it was in May. And that includes the key phrasing of "maintaining price stability and full employment is the priority".

This article was written by Justin Low at www.forexlive.com.

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