Forex trading news: RBA keeps interest rate unchanged at 0.75% in February!
2020-02-05 12:29 from：CAPSTONE author：Jack
Capstone Forex trading news: On Tuesday (February 4) in the Asian market, the Reserve Bank of Australia announced that the benchmark interest rate was unchanged at 0.75%, in line with market expectations, the previous value was 0.75%. After the announcement of the Reserve Bank of Australia ’s interest rate decision, the Australian dollar has strengthened against the US dollar AUD / USD in the short-term.
The RBA is expected to keep interest rates low for a longer period of time. And believe that this year's GDP growth target is about 2.75%. Next year's GDP growth target is 3%. Because wildfires and epidemics will curb economic growth in the short term, inflation is expected to be around 2% in the short term.
In addition, the Reserve Bank of Australia expects wage growth to continue to be suppressed. CPI is expected to fluctuate around 2% in the next two years. Low interest rates are boosting asset prices, which should lead to higher spending. Low interest rates have put downward pressure on the Australian dollar. The RBA will monitor the development of the labor market and expect the unemployment rate to remain at current levels for a longer period of time. There are signs of improvement in the real estate market, especially in Sydney and Melbourne. The RBA believes that it is too early to judge the impact of the epidemic and will closely monitor developments.
It is not surprising that the RBA has kept interest rates unchanged. The market had previously expected that the RBA would keep interest rates unchanged today. Investors said that despite the impact of the wildfire crisis on confidence and the tourism industry, and concerns about moderate inflation, for several weeks The previous strong employment report showed that the market's expectations for the Reserve Bank of Australia's upcoming interest rate cuts have fallen sharply.
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