“The Reserve Bank of Australia left its benchmark interest rate unchanged today for a fifth straight meeting, signaling a record local dollar will help contain consumer prices until late this year.
“The rising exchange rate will be helping to hold down prices for some consumer products over the coming few quarters,” RBA Governor Glenn Stevens said in a statement today after holding the overnight cash rate target at 4.75 percent, as forecast by 21 of 22 economists surveyed by Bloomberg News. “Over the longer term, inflation can be expected to increase somewhat if economic conditions evolve broadly as expected.”
“The Australian dollar declined against most of its major counterparts after the central bank left interest rates on hold and traders bet policy makers will extend the pause until the third quarter.
The so-called Aussie fell for a fourth day versus the yen as Governor Glenn Stevens said the recent surge in the currency may “exert additional restraint” on industries related to trade. New Zealand’s dollar dropped after a government report showed private-sector wages grew at a slower pace than some economists forecast. Both currencies extended losses as commodities and Asian equities declined.”
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