RBA’s Governor Lowe said in a Tweet today that inflation will stay low for quite some time, lowering the cash rate to 10 bps. More rate cuts, you’ve really got guts!
Source: Forex Factory
Hold on, that’s good to know but don’t ruminate on it too much because the Aussie was little moved by Governor Lowe’s comments on monetary policy, trading in line with the market vibe, underpinned above 0.70, at the time of writing. The RBA’s meeting minutes highlighted that loose monetary policy would stand as long as necessary. Most importantly, Lowe said the value of the Australian Dollar is set in the market and the RBA will not intervene to lower it. Meanwhile, the central bank “will do whatever required to keep 3-yr yield near 25 bps”, Lowe said.
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