Monday, January 31, 2011

Reserve Bank of Australia Holds Rate at 4.75%

The Reserve Bank of Australia (RBA) held the cash rate unchanged at 4.75 percent, judging monetary policy settings as "appropriate in view of the general macroeconomic outlook". The RBA noted in its statement that underlying inflation was around 2.25% in 2010, meanwhile the RBA expects inflation during 2011 to remain consistent with its 2–3 percent official inflation target range. The RBA also made note of the adverse impact of floods on production of crops and resources, but that it expects rebuilding to "add modestly to aggregate demand".


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