The Reserve Bank of Australia kept its benchmark interest rate unchanged for another round, as the growth prospects in the U.S. improves and China's outlook stays quite healthy, yet Europe remains at risk, and the local currency retreated.
The RBA's Governor Glenn Stevens and his policy board kept the overnight cash-rate target at 4.25%, yet the RBA's Governor said that there's scope to cut rates if demand weakens.
Yet, RBA's Governor said that the inflation will stay within the central bank's targeted range of 2% to 3%, even as the consumer-price index may weaken in the next quarter or two.
The RBA's Governor said that the Growth in China has moderated as was intended, but on most indicators remains quite robust overall.
Moving to the nation's currency, where it currency fell 0.5% to $1.0614, it bought $1.0647 before the decision, also the three-year bond yield fell to 3.64% from 3.71% yesterday and the 10-year yield fell to 3.98% from 4.04% yesterday.