At its meeting today, the Reserve Bank of Australia have decided to leave the cash rate unchanged at 1.50%

• The global economic expansion is continuing. 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.
• The Bank's central forecast is for growth of the Australian economy to average a bit above 3 per cent in 2018 and 2019. In the first half of 2018, the economy is estimated to have grown at an above-trend rate.
• Business conditions are positive and non-mining business investment is expected to increase. Higher levels of public infrastructure investment are also supporting the economy, as is growth in resource exports.
• The low level of interest rates is continuing to support the Australian economy. Further progress in reducing unemployment and having inflation return to target is expected, although this progress is likely to be gradual.

Taking account of the available information, the Board judged that holding the stance of monetary policy unchanged

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

Published : 04 Sep 2018