AUD is declining. Overview for 08.05.2024

The Australian dollar, paired with the US dollar, is retreating. The current AUDUSD exchange rate stands at 0.6577.

The Reserve Bank of Australia left the interest rate unchanged at 4.35% after its Monday meeting. Overall, the RBA maintained a cautious stance on monetary policy, emphasising the need to monitor developments in its comments.

Simultaneously, the regulator has acknowledged an unexpected rise in inflation and a sudden decrease in the unemployment rate. These factors have been reflected in the revised official macroeconomic forecasts, which have led to a downward revision of GDP forecasts.

The RBA acknowledged considerable uncertainty regarding short-term interest rates. Monetary policymakers will remain vigilant regarding the risks of mounting inflation. This time, monetary authorities considered the possibility of an interest rate hike alongside other scenarios.

The RBA primarily aims to curb inflation without pushing the economy into recession.