At its meeting yesterday, the Board decided to leave the cash rate unchanged at 1.50%.

• Conditions in the global economy are continuing to improve
• Labour markets have tightened further and above-trend growth is expected in a number of advanced economies, although uncertainties remain
• Wage growth remains subdued in most countries, as does core inflation
• The Bank's forecasts for the Australian economy are largely unchanged. Over the next couple of years, the central forecast is for the economy to grow at an annual rate of around 3 per cent
• Employment growth has been stronger over recent months, and has increased in all states
• The Australian dollar has appreciated recently, partly reflecting a lower US dollar. The higher exchange rate is expected to contribute to subdued price pressures in the economy
• Conditions in the housing market vary considerably around the country. Housing prices have been rising briskly in some markets, although there are some signs that these conditions are starting to ease

To view the full statement of Philip Lowe, Governor of the Reserve Bank, please click here.

Published : 01 Aug 2017