Forexpros – The Reserve Bank of Australia held its benchmark interest rate steady at 3.50% in July, it announced on Tuesday.
In a statement, the RBA said it was maintaining its benchmark interest rate at 3.50%, in line with market expectations.
The central bank cut rates by 0.75% over the last two months.
In its accompanying rate statement, RBA Governor Glenn Stevens said, “Financial markets have initially responded positively to signs of further progress towards longer-term sustainability in European financial affairs, but Europe will remain a potential source of adverse shocks for some time.”
Stevens added that the current monetary policy stance was appropriate, given “a more subdued international outlook than was the case a few months ago.”
Following the decision, the Australian dollar was higher against its U.S. counterpart, with AUD/USD adding 0.2% to trade at 1.0270.
Meanwhile, Asian stock markets were mixed, with Australia’s ASX/200 Index dipping 0.15%, Japan’s Nikkei 225 Index advanced 0.7%, while Hong Kong’s Hang Seng Index climbed 1.3%.
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