AUDUSD Slides As RBA Keeps Rate Steady

Published on Jul 04, 2023 11:49

The Australian dollar slipped on Tuesday after the Reserve Bank of Australia kept its benchmark interest rates steady. RBA`s monetary policy board decided to leave the cash rate target unchanged at 4.10 per cent and the interest rate paid on Exchange Settlement balances unchanged at 4.00 per cent. Interest rates have been increased by 4 percentage points since May last year. Amid uncertainty surrounding the economic outlook, the Board decided to hold interest rates steady this month. The board noted that inflation in Australia has passed its peak and the monthly CPI indicator for May showed a further decline but also retained that inflation is still too high and will remain so for some time yet. In making its decisions, the Board will continue to pay close attention to developments in the global economy, trends in household spending, and the forecasts for inflation and the labour market. The Board remains resolute in its determination to return inflation to target and will do what is necessary to achieve that, it added. AUDUSD slipped by nearly half a percent immediately in reaction to RBA decision and is currently quoting at 0.6672, down 0.24% on the day.