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Discussion on Australia neutral rates had no policy implications - RBA's Debelle

Published 21/07/2017, 01:58 pm
Updated 21/07/2017, 02:00 pm
© Reuters.  Discussion on Australia neutral rates had no policy implications - RBA's Debelle

SYDNEY, July 21 (Reuters) - The Reserve Bank Of Australia's discussion around the neutral rate of interest at its July meeting had no implications for monetary policy, Deputy Governor Guy Debelle said on Friday.

The RBA held its official cash rate at a record-low 1.50 percent this month after last easing in August 2016. Minutes of the meeting showed board members discussed the neutral policy interest rate - which neither stimulates the economy nor retards it - pegging it at 3.5 percent. was interpreted by some in the market as hawkish, sending the Australian dollar AUD=D4 to a 2-year peak. Debelle said on Friday that an appreciating exchange rate was complicating the economy's adjustment following a decade long mining investment boom.

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