03.02.2015 - Reserve Bank of Australia lowered its interest rate to 2.25%
Today the Australian dollar showed a significant reduction after the statement of the Reserve Bank of Australia to cut interest rates by 25 basis points to 2.25%. The regulator explained his decision by the need to support the economic growth in the country, improve the situation on the labor market and stimulate consumption. In addition, in the statement was noted the economic slowdown in the world in 2014, low inflation is explained by the fall in oil prices and changes in taxation. The bank also indicated stimulating effect of the fall of the Australian dollar and its current overvaluation. We maintain our medium-term negative outlook for the Australian dollar and recommend holding short positions with the potential of fall to 0.75 in the nearest future.