At its meeting today, the Reserve Bank of Australia have decided once again to leave the cash rate unchanged at 1.50%
- The global economy has strengthened over the past year. A number of advanced economies are growing at an above-trend rate and unemployment rates are low.
- Globally, inflation remains low, although it has increased in some economies and further increases are expected given the tight labour markets.
- Equity market volatility has increased from the very low levels of last year, partly because of concerns about the direction of international trade policy in the United States.
- APRA's supervisory measures and tighter credit standards have been helpful in containing the build-up of risk in household balance sheets, although the level of household debt remains high.
The Board judged that holding the stance of monetary policy unchanged at this meeting would be consistent with sustainable growth in the economy and achieving the inflation target over time.
To view the full statement of Phillip Lowe, Governor of the Reserve Bank, please click here.
Published : 19 Mar 2018