Reserve Bank of Australia’s Holds Interest Rates As Expected

Written June 2, 2009 at 12:32 AM EST by  

The RBA has held Interest Rates at 3.00% as forecast. 

RBA:  Sees scope remain for further easing if needed

- Global economy is stabilizing, turnaround is most evident in China
- Australian economy has been shrinking, growth in labor costs starting to decline
- Inflation to continue to recede in next 2 years
- Fiscal measures are producing considerable support for demand
- Full impact of recent easing yet to be felt
- Sees stronger dwelling activity later in the year
- Board to continue to monitor the economy and financial conditions
***The AUD initially softened following these comments

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