Australia's central bank on Tuesday kept interest rates at a record low in its first meeting of the year, with inflation still soft and the outlook for household spending uncertain. The Reserve Bank of Australia has not adjusted rates since August 2016, following a series of cuts from November 2011 that took it to 1.50 percent in a bid to boost non-mining sectors of the economy.
Governor Philip Lowe said in a statement that the current monetary policy stance was supporting economic growth. "The low level of interest rates is continuing to support the Australian economy," he said after the RBA board meeting. The economy has endured a bumpy exit from an unprecedented resources investment boom, but recent data has pointed to a strengthening labour market and business investment.
Even so, wages growth remains weak while household debt is high, keeping the central bank on the sidelines with economists tipping a possible rate rise only later this year.
Comments
Comments are closed.