RBA Says Rate Appropriate After Aussie Drop; Currency Gains

Australia’s central bank said the currency’s decline and past interest-rate cuts meant its policy setting was appropriate even as it maintained room for future reductions, according to minutes of its July 2 meeting.

“Given the exchange rate adjustment that was occurring, and with the substantial degree of monetary stimulus already in place, members assessed the current stance of policy to be appropriate,” the Reserve Bank of Australia said today in Sydney in minutes of the meeting at which it held the cash rate steady. The RBA said the inflation outlook was “slightly higher” due to the Aussie’s recent drop.