At its meeting today, the RBA Board have decided to leave the cash rate once again unchanged at 1.50%
- The global economic expansion is continuing and unemployment rates in most advanced economies are low.
- In Australia, money-market interest rates have declined, after increasing earlier in the year. Standard variable mortgage rates are a little higher than a few months ago and the rates charged to new borrowers for housing are generally lower than for outstanding loans.
- Australia's terms of trade have increased over the past couple of years and have been stronger than earlier expected. This has helped boost national income.
- Conditions in the Sydney and Melbourne housing markets have continued to ease and nationwide measures of rent inflation remain low. Credit conditions for some borrowers are tighter than they have been for some time, with some lenders having a reduced appetite to lend.
- 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 Dec 2018