Reserve Bank of Australia holds rate at record low of 2.5%
Investing.com
Published Aug 05, 2014 03:30AM ET
Reserve Bank of Australia holds rate at 2.5%
Investing.com - The Reserve Bank of Australia held its benchmark interest rate at a record low on Tuesday, in a widely expected decision, and reiterated that it expects borrowing costs to remain low for an extended period of time.
In a statement, the RBA said it was maintaining its benchmark interest rate at 2.5%, in line with market expectations.
Commenting on the decision, RBA Governor Glenn Stevens said "the most prudent course is likely to be a period of stability in interest rates."
Stevens added that, “the exchange rate remains high by historical standards, particularly given the declines in key commodity prices, and hence is offering less assistance than it might in achieving balanced growth in the economy.”
Following the decision, the Australian dollar was higher against its U.S. counterpart, with AUD/USD easing up 0.03% to trade at 0.9337.
Meanwhile, Asian stock markets ended mixed. Australia’s S&P/ASX 200 closed 0.4% lower, Hong Kong's Hang Seng rose 0.1%, China’s Shanghai Composite inched down 0.15%, while Japan’s Nikkei 225 lost 1%.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.