At its meeting today, the Board decided to leave the cash rate unchanged at 0.75 per cent.
- The outlook for the global economy remains reasonable. There have been signs that the slowdown in global growth that started in 2018 is coming to an end.
- Global growth is expected to be a little stronger this year and next than it was last year and inflation remains low almost everywhere.
- Uncertainty exists due to the US/China trade and technology dispute. The coronavirus is also a factor affecting the Chinese economy, and the duration and extent of this is unknown.
- Due to both global and domestic factors, it is reasonable to expect that an extended period of low interest rates will be required in Australia to reach full employment and achieve the inflation target.
The Board will continue to monitor developments carefully, including in the labour market. It remains prepared to ease monetary policy further if needed to support sustainable growth in the economy, full employment and the achievement of the inflation target over time.
To view the full statement of Philip Lowe, Governor of the Reserve Bank, please click here.
Published : 04 Feb 2020