RBA maintains rate level and Australian dollar gains

03-03-2009 15:13

The Reserve Bank of Australia decided to maintain the policy interest rate which is surprisingly after the recent, rigorous rate cuts. The unchanged rate resulted in an increase of the Australian dollar against all major currencies today, which could be sustainable and last for several weeks.

RBA: additional rate cut redundant

The RBA stated that the government’s spending and the record low interest rates should be sufficient to boost the national economy. For that reason the Reserve Bank of Australia did not change the 3.25% rate for the first time in seven months. The Australian dollar went up versus the pound, the euro, the US dollar and against the Japanese yen.

Possible positive Australian outlook

Tomorrow’s report concerning the gross domestic product (GDP) growth in the last quarter of 2008 may be positive. Analysts expect a 0.2% advancement which is not bad at all in relation to the economies of other developed countries. The current growth of the Australian dollar may last for some weeks and is likely to be sustainable in the short-term.