Ella 
After the Reserve Bank of Australia’s monetary policy meeting in September, the Reserve Bank of Australia (RBA) announced that the official cash rate (OCR) remained unchanged at 4.10%, in line with market consensus.
Outgoing RBA Governor Philip Lowy delivered his final monetary policy statement, a key summary of his speech follows.
Monetary policy may need to be tightened further.
The Governing Council remains firmly determined to return inflation to target.
Higher interest rates help create a more sustainable balance of supply and demand in the economy.
Inflation is falling, the labor market remains strong, and the economy is running at high capacity utilization.
More time will be provided to assess the impact of rising interest rates so far and the economic outlook.
Inflation is still too high, and it will be for some time.
The outlook for China’s economy is growing uncertain.
The prices of many goods and services are rising rapidly, as is rent inflation.
The continued rise in prices for overseas services has been surprising, and the same could happen in Australia.
The economy is going through a period of below-trend growth, which is expected to continue for some time.
The outlook for household consumption also remains uncertain.
AUD/USD reaction
AUD/USD experienced a knee-jerk rebound following the RBA decision, falling further to an intraday low of 0.6417 before falling back to 0.6428, where it is currently fluctuating. AUD/USD is down 0.50% on the day.
