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The Reserve Bank of Australia (RBA) board members decided to maintain the official cash rate (OCR) at a record low of 0.10% at their June monetary policy meeting,

The RBA kept its target of 10  basis points for yield on a 3-year Australian government bond unchanged.

The central bank also maintained the parameters for the government bond purchase programme, adding that they will not increase the cash rate until actual inflation is sustainably within the 2%  to 3% target range.

FX implications

The AUD/USD pair eased slightly on the expected RBA decision.

The spot was last seen trading at 0.7752, still up 0.20% on the day.

About RBA rate decision

RBA  Interest Rate Decision  is announced by the  Reserve Bank of Australia. If the RBA is hawkish about the inflationary outlook of the economy and rises the interest rates it is positive, or bullish, for the AUD. Likewise, if the RBA has a dovish view on the Australian economy and keeps the ongoing interest rate, or cuts the interest rate it is seen as negative, or bearish.