RBA refuses to join hawks due to strong AUD

An article in the Sydney Morning Herald says the risk of further appreciation in the Australian dollar is high if the RBA talks up or pushes up interest rates.

Governor Lowe’s statement paid tribute to “the role played by the depreciation of the dollar since Jan 30 when one AUD bought $US 1.05. The drop to 76 US cents assisted economy in its transition following the mining investment boom”.

No wonder, the RBA retained its neutral stance.