The Reserve Bank of Australia’s meeting today
saw stability in monetary policy and interest rate at 1.50 percent, amid signs
that the Australian dollar is stable but currently low.
The RBA said growth in the global economy was continuing,
but US trade policies continued to be a source of uncertainty, while growth in
the Chinese economy slowed due to the government's grip on credit risk and
narrowing investment opportunities.
Stock markets fell sharply as yields on
government bonds rose worldwide, while short-term interest rates in Australia dropped
after rising earlier this year.
On the other hand, the bank said the Australian
economy has recorded growth above 3.5% in 2018 and is expected to continue in
2019, but it may slow in 2020.
Inflation is continuing to stabilize and is
expected to rise in the coming years at a gradual pace, where the rate will
reach 2.25 percent in 2019 then rises slightly in 2020.
Overall, the RBA saw that keeping the current
monetary policy would move in line with growth and inflation targets, while keeping
interest rates at low levels could support the economy, especially as
unemployment rates continue to fall.
The Australian dollar rose for the second session
in a row against the dollar to set a high of 0.7239 after opening today's
trading at 0.7209.
Despite the Aussie’s rally in recent days versus the US dollar, it is still moving below the bearish trend line, which if breached would target 0.7700 levels.