From the Bank of Tokyo Mitsubishi after the RBA
The Australian dollar has been the best performing currency in the Asian trading session following last night RBA policy meeting. The RBA left their policy rate unchanged as expected and more importantly left the final paragraph of their accompanying statement unchanged as well The statement acknowledged that China’s economy has steadied, employment growth has slowed, and house prices were described as having risen briskly in some markets. The RBA signalled that their outlook for the economy was largely unchanged still expecting it to grow at close to its potential rate over the next year before gradually strengthening. Inflation is expected to pick up gradually over the next two years from the current "quite low" rate.
