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Australia: Policy Held, No Hint of Further Action
- As expected, the Royal Bank of Australia (RBA) decided to keep the Cash Rate unchanged at 3.5% in its August meeting. This is the second month of holding after two previous rate cuts in May and June totaling 75 basis points.
- It appears that the RBA is content to see how the current level of easing works through the economy, with most domestic indicators pointing to trend-type growth.
- DE View: Extended Policy Pause. Based on the domestic backdrop and outlook, RBA rhetoric suggests that policy will be on hold unless any external risks materialize.