At its meeting today, the RBA Board have decided to leave the cash rate once again unchanged at 1.50%
- In Australia, money-market interest rates are higher than they were at the start of the year, although they have declined since the end of June. In response, some lenders have increased their standard variable mortgage rates by small amounts, while at the same time reducing mortgage rates for some new loans.
- Growth in household income remains low and debt levels are high. The drought has led to difficult conditions in parts of the farm sector.
- The unemployment rate is trending lower and, at 5.3 per cent, is the lowest in almost six years.
- Inflation is around 2 per cent. The central forecast is for inflation to be higher in 2019 and 2020 than it is currently.
- Conditions in the Sydney and Melbourne housing markets have continued to ease and nationwide measures of rent inflation remain low.
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 : 02 Oct 2018