Glenn Stevens lifts veil on RBA comms strategy
Governor talks through the RBA’s open mouth operations
Forward guidance on the future path of interest rates has "served its intended purpose" by stifling market expectations of a rate hike, Reserve Bank of Australia (RBA) governor Glenn Stevens said today.
In this week's monetary policy decision, the RBA held its cash rate at 2.5%, while noting that, "on present indications, the most prudent course is likely to be a period of stability in interest rates".
The RBA has repeated this refrain in each of the past six months. Stevens said this was
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