LOS ANGELES – The Reserve Bank of Australia did it again, keeping its benchmark cash interest rate at an all-time low of 2.5% Tuesday, and while the decision was widely expected, it still managed to bump the Australian dollar higher. The language in the accompanying statement from RBA Gov. Glenn Stevens was almost identical to the previous edition from June 3, including the outlook that "on present indications, the most prudent course is likely to be a period of stability in interest rates." Stevens also repeated last month's opinion that "the exchange rate remains high by historical standards," but this time, he also added that the currency's value "is offering less assistance than it might in achieving balanced growth in the economy." Despite this forex commentary, however, the Australian dollar gained on the confirmation of no action and a mixed view on the economy, which Stevens said will grow "a little below trend over the year ahead." The currency rose to 94.50 U.S. cents after the decision, up from 94.16 U.S. cents moments ahead of the announcement.
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