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RBA holds rates at 3%; statement more neutral

FXstreet.com (Barcelona) - At its meeting today, the Reserve Bank of Australia decided to leave the interest rate unchanged at 3.0%, saying that moderate inflation still provides scope for easing, however downside risks appear to be reduced.

According to Greg McKenna, founder at GlobalFX, "RBA seems dovish to me finishes with inflation and scope to ease..." Meanwhile, David Scutt, Treasury Dealer at Arab Bank Australi, said the statement was "more neutral than in April though."

From the RBA offcial statement: "With inflation likely to be consistent with the target, and with growth likely to be a little below trend over the coming year, an accommodative stance of monetary policy is appropriate. The inflation outlook, as assessed at present, would afford scope to ease policy further, should that be necessary to support demand. At today's meeting, the Board judged that it was prudent to leave the cash rate unchanged. The Board will continue to assess the outlook and adjust policy as needed to foster sustainable growth in demand and inflation outcomes consistent with the target over time."

Australia RBA Interest Rate Decision stays unchanged at 3% in Apr 2

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Forex: AUD/USD higher as RBA on hold

The AUD/USD is last at 1.0476,near session and weekly highs after RBA maintains interest rates on hold at 3% and says in the statement there is scope to ease further if needed. The pair jumped to session highs above 1.0470 on the news, but soon eased back to where previously was trading, and then moved higher again.
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