RBA keeps rates on-hold, higher AUD to continue to weigh on price pressures

The RBA left its Official Cash Rate (OCR) unchanged at a record low of 1.5% at its monetary policy meeting held today.

The RBA statement read: "Taking account of the available information, the Board judged that holding the stance of monetary policy unchanged at this meeting would be consistent with sustainable growth in the economy and achieving the inflation target over time.”

With regard to the current level of rates and the value of the Aussie, the RBA added: "The Australian dollar has appreciated recently, partly reflecting a lower US dollar. The higher exchange rate is expected to contribute to subdued price pressures in the economy. It is also weighing on the outlook for output and employment. An appreciating exchange rate would be expected to result in a slower pick-up in economic activity and inflation than currently forecast."