At its meeting today, the Reserve Bank of Australia have decided once again to leave the cash rate unchanged at 1.50% based on the following factors :
- The Bank's forecasts for growth in the Australian economy are largely unchanged. The central forecast is for gross domestic product growth to pick up and to average around 3 per cent over the next few years.
- Growth in housing debt has been outpacing the slow growth in household income for some time. Housing market conditions have eased further in Sydney. In most cities, housing prices have shown little change over recent months, although they are still increasing in Melbourne. In the eastern capital cities, a considerable additional supply of apartments is scheduled to come on stream over the next couple of years.
- The Australian dollar has appreciated since mid year, partly reflecting a lower US dollar. The higher exchange rate is expected to contribute to continued subdued price pressures in the economy.
To view the full statement of Phillip Lowe, Governor of the Reserve Bank, please click here.
Published : 06 Nov 2017