Interest rates unchanged ... for now
Thursday, August 05, 2004
No interest rate change for eighth month.
As a result of its meeting early in the week the Reserve Bank of Australia has elected to leave interest rates steady again this month. Although the bank gave no reason for its decision to leave rates unchanged many economists believe the combination of the decline in the housing market, strong imports, solid currency growth and the forthcoming Federal election all played a role. The decision means August will be the eighth consecutive month of steady interest rates.
Aussie dollar eases
The Australian dollar slightly weakened today after the Reserve Bank of Australia left official interests rates announcement.
Just before the announcement at 0930 AEST, the local currency was trading at $US0.7295 and eased to 0.7289 after the interest rate news.
Local bonds were largely unchanged after the announcement.