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 Australian economy expanded by 0.8 per cent in the June quarter. This outcome and other recent data are consistent with the Bank's expectation that growth in the Australian economy will gradually pick up over the coming year.
- Employment has continued to grow strongly over recent months. The various forward-looking indicators point to solid growth in employment over the period ahead, although the unemployment rate is expected to decline only gradually 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.
- Growth in housing debt has been outpacing the slow growth in household incomes for some time. To address the medium-term risks associated, a number of supervisory measures have been introduced.
To view the full statement of Phillip Lowe, Governor of the Reserve Bank, please click here.
Published : 03 Oct 2017