Reserve Bank of Australia left rates unchanged at 3.25%

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Pounds to Australian Dollars Chart 03-03-09

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Reserve Bank of Australia left rates unchanged at 3.25%

Australian Dollar Rate Outlook

RBA: The Reserve Bank of Australia left rates unchanged at 3.25% Tuesday call.

Comments from RBA Governor Stevens:

"Demand has not weakened as much as in other countries and, on the basis of currently available information, the Australian economy has not experienced the sort of large contraction seen elsewhere. The Australian financial system remains strong and the monetary policy transmission process is working to deliver large reductions in interest rates to end borrowers. Nonetheless, economic conditions are clearly weak, and given the speed and scale of the global economic deterioration and its effect on confidence, weak conditions are likely to continue in the near term. Inflation is likely to decline over time.... There has already been a major change in both monetary and fiscal policy.... Together with the substantial fiscal initiatives, the cumulative decline in interest rates will provide significant support to domestic demand over the period ahead....The Board will consider the position again at its next meeting"

The Australian Dollar exchange rate was the main winner on the robust nature of Gov Stevens comments and RBA's and desision and was up more than 2% across the board.

Pounds to Australian Dollars = 2.2218
Euros To Australian Dollars = 1.9600
Australian Dollars to US Dollars = 06445
Australian Dollars to New Zealand Dollars = 1.2900

Bye For Now

IMS Foreign Exchange