At its meeting today, the Reserve Bank of Australia have decided to leave the cash rate unchanged at 1.50% in it's 24th consecutive month.
- Conditions in the Sydney and Melbourne housing markets have continued to ease and nationwide measures of rent inflation remain low. Housing credit growth has declined to an annual rate of 5½ per cent. Lending standards continue to tighten.
- Some lenders have increased mortgage rates by small amounts, although the average mortgage rate paid is lower than a year ago.
- Globally, inflation remains low, although it has increased in some economies and further increases are expected given the tight labour markets. One uncertainty regarding the global outlook stems from the direction of international trade policy in the United States.
- The Bank's central forecast for the Australian economy remains unchanged. GDP ( Growth Domestic Product ) growth is expected to average a bit above 3 per cent in 2018 and 2019.
- One continuing source of uncertainty is the outlook for household consumption. Household income has been growing slowly and debt levels are high. The drought has led to difficult conditions in parts of the farming sector.
Taking account of the available information, the Board judged that holding the stance of monetary policy unchanged at this meeting would be consistent with sustainable growth in the economy and achieving the inflation target over time.
To view the full statement of Phillip Lowe, Governor of the Reserve Bank, please click here.
Published : 06 Aug 2018