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At its scheduled May monetary policy meeting held Tuesday, the Reserve Bank of Australia (RBA) left its monetary policy settings unchanged, with the official cash rate (OCR) kept on-hold at a record low of 0.25%, as widely expected.

The RBA stands pat for the second straight meeting this month after having announced a quantitative easing (QE) program to help the economy cushion the blow from the coronavirus pandemic on March 19 emergency meeting.

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.

FX implications

As the RBA decision was on the expected lines, the Australian dollar showed little reaction, as the AUD/USD pair kept its range around 0.6445 region.