RBA offered no fireworks – Danske Bank

This morning, the Reserve Bank of Australia (RBA) as expected kept policy rates unchanged at 1.5% as widely expected, notes Chief Analyst, Christin Tuxen at Danske Bank.

Key quotes

“The RBA said that unchanged policy from here on in should be ‘consistent’ with meeting the inflation target and that AUD appreciation would ‘complicate’ the adjustment process. AUD/USD fell on impact, dropping below the 0.7650 level and thus failed to join the chorus of recently fairly hawkish central bankers calling for ‘normalisation’ of monetary policy. Then again, however, the RBA has not been engaged in either negative rates or asset purchases, making the need for an ‘exit’ much less pressing.”