Australia’s central bank leaves cash rate unchanged at 1.5%
The Reserve Bank of Australia decided to leave the cash rate unchanged at 1.50%.
In one of its most anticipated decisions since the bank last cut interest rates in August 2016, the RBA decided on Tuesday to leave the cash rate unchanged at 1.5%
The decision marks the RBA's first for 2019, after a two-month hiatus over the holiday period.
IG market analyst, Kyle Rodda says it was a widely expected decision given policy makers had been signalling a steady outlook for some time.
However, financial markets had been factoring in a more than a 50% chance that the rate decision would be lowered by 25 basis points by the end of the year.
This was mainly due to the economic data releases in China, and abroad which had shown significantly weaker than expected results since December. These have in turn renewed fears of a slowing global economy.
RBA Governor Phillip Lowe said,‘The trade tensions are affecting global trade and some investment decisions. Growth in the Chinese economy has continued to slow, with the authorities easing policy while continuing to pay close attention to the risks in the financial sector.’ In the RBA’s monetary policy decision.
The RBA adjusted their lower growth outlook from 3.5% to 3% but remained upbeat.
Australian Dollar Price
The Australian dollar against the greenback was already on the defensive following weak Australian retail sales, and traded above $0.7240 at time of writing, slightly up from the $0.721 just before the RBA decision.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Start trading forex today
Find opportunity on the world’s most-traded – and most-volatile – financial market.
- Trade spreads from just 0.6 points on EUR/USD
- Analyse with clear, fast charts
- Speculate wherever you are with our intuitive mobile apps
See an FX opportunity?
Try a risk-free trade in your demo account, and see whether you’re onto something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See an FX opportunity?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from just 0.6 points on popular pairs
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See an FX opportunity?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
