At it's meeting on 3rd September, the board of the Reserve Bank of Australia have decided to leave the cash rate unchanged at 1.00 per cent.
- The outlook for the global economy remains reasonable, although the risks are tilted to the downside.
- The trade and technology disputes are affecting international trade flows and investment as businesses scale back spending plans due to the increased uncertainty.
- The persistent downside risks to the global economy combined with subdued inflation have led a number of central banks to reduce interest rates this year and further monetary easing is widely expected.
- Economic growth in Australia over the first half of this year has been lower than earlier expected, with household consumption weighed down by a protracted period of low income growth and declining housing prices and turnover.
- Inflation pressures remain subdued and this is likely to be the case for some time yet.
The Board will continue to monitor developments, including in the labour market, and ease monetary policy further if needed to support sustainable growth in the economy and the achievement of the inflation target over time.
To view the full statement of Philip Lowe, Governor of the Reserve Bank, please click here.
Published : 03 Sep 2019