RBA Statement on Monetary Policy | Forex Factory

RBA Statement on Monetary Policy | Forex Factory

RBA Statement on Monetary Policy

From rba.gov.au

At its meeting today, the Board decided to leave the cash rate unchanged at 2.5 per cent. Recent information is consistent with global growth running a bit below average this year, with reasonable prospects of a pick-up next year. Commodity prices have declined from their peaks, but generally remain at high levels by historical standards. Inflation in most countries is well contained. Overall, global financial conditions remain very accommodative. Volatility in financial markets has abated recently. Long-term interest rates remain very low and there is ample funding available for creditworthy borrowers. In Australia, ... (full story)

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Dec 2, 2013 10:03pm

The key statement is:
"The easing in monetary policy that has already occurred since late 2011 has supported interest-sensitive spending and asset values. The full effects of these decisions are still coming through, and will be for a while yet."

This suggests that no more rate cuts until end of Q1 2014 - this should be slightly AUD positive.

Dec 2, 2013 10:07pm

Quoting Deano9999

Disliked

The key statement is:
"The easing in monetary policy that has already occurred since late 2011 has supported interest-sensitive spending and asset values. The full effects of these decisions are still coming through, and will be for a while yet."

This suggests that no more rate cuts until end of Q1 2014 - this should be slightly AUD positive.

Ignored

I think it's positive. But don't know abt market. Government intervention is not mention.

Dec 2, 2013 11:24pm

The Australian dollar, while below its level earlier in the year, is still uncomfortably high. A lower level of the exchange rate is likely to be needed to achieve balanced growth in the economy.

I think this is tamer than his previous statement. Though he still expresses his concern.

Dec 2, 2013 9:55pm

Quoting KevinThomas

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Based on the statement, AU will go down soon...

Ignored

The Reserve Bank of Australia kept its cash rate steady at a record low 2.5% on Tuesday in its November review as expected, adding that the Australian dollar remains uncomfortably high and it would assess its outlook and adjust policy as needed.????

Dec 3, 2013 7:04am

time for long AUDUSD
a Hammer (daily candle chart AUDUSD)

Dec 2, 2013 11:36pm

Buy audusd 0.9000

Dec 2, 2013 9:44pm

No surprise. I think it will be in a range. But stay out today.

Dec 2, 2013 9:42pm

Tussle between the bull and the bear! WTF!

Dec 2, 2013 9:45pm

Based on the statement, AU will go down soon...

Dec 2, 2013 11:09pm

The Reserve can say it won't intervene because IMO …. thay just did !

" Australian dollar remains uncomfortably high " …… That in itself IS! intervention

Dec 3, 2013 12:11am

Quoting Lv5758

Disliked

Is it possible that what Stevens is doing is verbal-intervention since they cant cut rates anymore fearing the housing bubble?

Ignored

Spot on.

Dec 3, 2013 1:51am

Quoting Lv5758

Disliked

Is it possible that what Stevens is doing is verbal-intervention since they cant cut rates anymore fearing the housing bubble?

Ignored

I think it will fuel the housing bubble. If money is cheaper to borrow, more people will get loans and outstrip the already controlled and dwindling housing market. The cost to buy a house will increase? Then pop? Looks tempting to borrow but what about in a few years time when the rate goes to %10 (if it did hypothetically) the bankers are rubbing their hands together and money is magically appearing.

Dec 3, 2013 7:05am

Dutch Disease in Oz - Selling on spikes into technical levels for longer term trades.

Although nothing wrong with day trading a few spikes into strong supported levels.

Dec 2, 2013 10:56pm

Is it possible that what Stevens is doing is verbal-intervention since they cant cut rates anymore fearing the housing bubble?

Dec 2, 2013 9:45pm

The commentary is consistent, yet understated.

Trader#19A5

Dec 2, 2013 11:15pm

Any rally in AUD is driven by retail specs. As soon as it reaches technical points, the pros are selling it to smithereens. Take for example what happened yesterday when it reached past .9150

For me the Aussie is firmly a SELL only currency. Just wait for the right time if it is going to bounce... I'm already short even at below .91 levels.

Dec 3, 2013 1:45am

long tonight, short tomorrow maybe

Trader#C170

Dec 2, 2013 9:33pm

good for aud is it buy chance or sell here

Trader#98EE

Dec 2, 2013 9:37pm

stay out !

Trader#26D2

Dec 2, 2013 10:52pm

It's suppose to be positive for AUD but market is not always predictable

Trader#8D7D

Dec 3, 2013 7:02am

time for long AUDUSD
a Hammer (daily candle chart)

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Dec 2, 2013 9:30pm
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Linked events:

AU Cash Rate

AU RBA Rate Statement