Reserve Bank of Australia Rate Statement
RBA Statement to Offer More Action Than the RBA Cash Rate Decision
Starts Tuesday, August 21, 2018 at 17:41
Updated Monday, August 6, 2018
While interest rates are expected to remain unchanged, the statement from the RBA should offer some more insight into the outlook for the Australian economy. With China under tariffs from the US, it will be interesting to see how that might affect the Australian economy. Although, the trade war has just started and it is expected to intensify in the upcoming months, so the impact on the Australian economy is still to be felt. But, the RBA should have an opinion about all this trade disruption which surely will affect Australia. It will be interesting to hear the messages from the RBA statement and the market reaction to them. High volatility is expected.
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About Reserve Bank of Australia Rate Statement
The RBA Monetary Policy Statement is a synopsis of current economic conditions prevalent in Australia. It is an assessment of economic growth, capital market performance, and serves as a release of the RBA’s adopted monetary policy.The RBA Cash Rate is the “overnight money market interest rate,” or the “prime rate” assigned to loans in Australia. It is determined by the Reserve Bank Board and released shortly after each meeting concludes. The RBA Cash rate is revisited every calendar month except for January. The primary goals of the RBA are to promote pricing stability and ensure long-term economic growth. Inflationary concerns are addressed directly in the RBA Statements, including measures taken to mitigate any negative impact upon the domestic economy. A hawkish tone toward the Australian dollar (AUD) is viewed as being bullish, while a dovish perspective is widely accepted as bearish.The RBA Monetary Policy Statements are a key market moving event for valuations of the AUD. Heightened volatility is commonplace surrounding the release, with traders and investors forming opinions on future policy moves during the commentary.