RBA Keeps Cash Rate at 1.5%
As expected, the RBA left the cash rate unchanged at 1.5%. Policymakers continued to optimistically assess growth prospects, although they expressed concern about household spending and mild inflation. Policymakers noted that the growth in housing debt continues to outstrip household income growth. Politicians also recognized the constant weakness of the CPI.
Low interest rates continue to support the Australian economy. The RBA assumes that maintaining the monetary policy unchanged at this meeting will be consistent with sustainable economic growth and the achievement of the inflation target.
The RBA retained the forecast of economic growth, according to which GDP will be about 3% in the next few years. The labor market continues to strengthen. It is expected, that the unemployment rate will gradually decline from the current level of 5.5%. But still, the growth of wages remains low.