The Reserve Bank of Australia announced its interest rate decision, leaving the benchmark interest rate unchanged at 0.1%, with an expected 0.10% and a previous value of 0.10%. The RBA left its three-year yield target unchanged at 0.10%.

In a statement after the June policy meeting, RBA Chairman Philip Lowe said:

The Committee is committed to maintaining a highly supportive monetary environment to support Australia's return to full employment and that inflation is in line with the target. The committee will not raise cash interest rates until real inflation remains within the target range of 2% to 3%. " "as predicted last month, at its July meeting, the committee will consider whether to keep bonds maturing in April 2024 as target bonds for the three-year bond yield target, or to move to the next maturity date," the statement said. bonds maturing in November 2024. The committee does not consider changing the target of 10 basis points. "

The RBA said the strength of the labour market was a bright spot in Australia's economic recovery. The unemployment rate has fallen to 5.5 per cent from a peak of 7.4 per cent in July last year. Lowe believes it needs to fall to 4 per cent to stimulate wage growth and return inflation to target levels.

Australian Dollar gives up gains the Reserve Bank of Australia reiterates its dovish policy position

The Australian dollar / US dollar gave up its gains after the RBA left its benchmark interest rate unchanged and reiterated its dovish stance. The Australian dollar / US dollar was at 0.7747 and was at 0.7761 before the decision was announced. The RBA again said it would not raise cash rates until inflation reached 2 per cent, which would not be achieved until 2024 at the earliest.