Australia’s central bank kept interest rates steady at a record low 2.0 percent, in line with analysts’ expectations, but the Australian dollar still pushed higher.
All 24 economists polled by Reuters expect the RBA to be on hold, but eight respondents say interest rates could be reduced to 1.75 percent or lower by December, if non-mining business investments remain subdued.
The Australian dollar strengthened 0.4 percent to trade at $0.7654, from $0.7628 prior to the data. The benchmark S&P ASX 200 index widened losses slightly to fall 1.3 percent, touching an eight-day low.