RBA leaves Rates Unchanged, BoC on Focus

The RBA kept policy unchanged, in line with consensus, keeping the cash rate unchanged at 4.75%. The accompanying statement offered little in the way of policy guidance, noting only that the board “judged that the current mildly restrictive stance of monetary policy remained appropriate in view of the general macroeconomic outlook”. Australian dollar was mildly lower following the RBA’s decision.

Today’s main focus will be Bank of Canada’s rate decision. Canadian dollar has been strong as supported by recent surge in oil prices. Recent rally extended yesterday after stronger than expected December GDP growth reading of 0.5% mom. It is expected that the bank will likely leave the overnight rate unchanged at 1%.