Article by ForexTime
The Reserve Bank of Australia released minutes of its October policy meeting, with concerns about growth in China, Japan and Europe more prominent than in previous releases around its interest rate position. The central bank noted that economic conditions in China, which is Australia’s major trading partner, had “softened” a little.
The minutes, which were drafted just after the release of Australia’s second-quarter gross domestic product figures earlier this month, also note sluggish business investment and continued growth in property investment. Most of this was foreshadowed in the commentary by governor Glenn Stevens when the RBA board voted to hold the cash rate at 2.5 per cent for the 14th month in a row.
The RBA said at the time it foresaw “a period of stability in interest rates”.
“Given the information available, the board’s judgement was that the current stance of monetary policy continued to be appropriate for fostering sustainable growth in demand and inflation outcomes consistent with the target over the period ahead,” it said at the time.
The aussie was volatile after the release of the minutes, dropping to a low of 0.8742 before steadying back up to above 0.8780.
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Article by ForexTime
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