The Reserve Bank of Australia (RBA) board members decided to leave the official cash rate (OCR) unchanged at a record low of 0.10% during their December monetary policy meeting.

The board decided to maintain the interest rate on exchange settlement balances at zero percent.

The board decided to continue to purchase government securities at the rate of $4 billion a week until at least mid-February 2022.

A Reuters poll last week showed economists expect the first-rate hike in early 2023, though markets have fully priced in a hike as early as July next year.

AUD/USD reaction

The AUD/USD pair is trading close to daily highs of 0.7065 on the expected RBA decision.

The spot was last seen trading at 0.7059, up 0.11% 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.