SYDNEY - Australia’s central bank held interest rates steady on Tuesday and again highlighted the strength of employment, showing no immediate inclination to echo the outright dovish tone of some of its global peers.
The Reserve Bank of Australia ended its April policy meeting with rates firmly lodged at 1.5 percent, where they have been since mid-2016. Neither did its statement smack of any urgency to act. Just last week, the Reserve Bank of New Zealand blindsided investors by abandoning its neutral stance and declaring the next move in interest rates would likely be down.
That in turn fed speculation the RBA would ultimately be forced to ease, if only to stop its currency from rising. The government of Prime Minister Scott Morrison has plenty of incentive to be generous given it faces an election in May and is running well behind in the opinion polls. The ANZ-Roy Morgan index of consumer confidence out on Tuesday showed a 2.6 percent rise last week to near a one-month high, largely due to optimism on the economic outlook.
Walkin softly, know a storm is coming their way😎