As expected, cash rate left at 2.5%
- Sees below trend growth persisting in near term
- Says $A still uncomfortably high
- Lower $A likely to be needed for economy
- Public spending to be quite weak
- Inflation consistent with medium term target
- Housing, sharemarkets have strengthened, positive for investment
- Says effect of past easing still coming through
Link:
2 December 2013 – Statement by Glenn Stevens, Governor: Monetary Policy Decision
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So, there you have it. The AUD/USD is nigh on unchanged from just before the release, but very soft on the day. No surprise in the ‘no change’ decision, and no surprise in the accompanying statement either.
