By Sarah Turner, MarketWatch
SYDNEY (MarketWatch) — The Reserve Bank of Australia kept its policy interest rate on hold at 4.75% on Tuesday, with the central bank stating that it believes its policy is the right one for current economic conditions.
The interest-rate setting committee of the Reserve Bank of Australia said that “the current mildly restrictive stance of monetary policy” is appropriate, adding that, in future meetings, it will carefully assess the evolving outlook for growth and inflation.
The RBA said Tuesday that, over the medium term, growth is likely to be at trend or higher.
It also expects that, as temporary price shocks dissipate over the coming quarters, consumer price inflation will be close to target over the next 12 months.
The Australian dollar AUDUSD -0.2397% weakened after the decision, trading down 0.4% at $1.0686 against the greenback.
The share market moved off early lows, however, with the S&P/ASX 200 index AU:XJO +0.07% trading down 0.2% at 4,559.60.
