RBA signals further easing after leaving benchmark unchanged
Traders are pricing in 2 more quarter percentage point cuts in the next 12 months
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THE Reserve Bank of Australia (RBA) said further interest-rate cuts could be needed to bolster growth after it unexpectedly left its benchmark unchanged. The currency gained.
"Further easing of policy may be appropriate over the period ahead, in order to foster sustainable growth in demand and inflation consistent with the target," governor Glenn Stevens said on Tuesday after leaving the overnight cash rate at 2.25 per cent. The decision was predicted by 11 of 29 economists surveyed by Bloomberg News, while 18 saw a cut.
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