RBA Announce Cash Rate Target to Remain Steady

Xe Corporate APAC

April 2, 2019 3 min read

The Reserve Bank of Australia just announced the cash rate target will be held steady at the record low of 1.50%. This outcome was widely expected.

The pertinent points in the RBA’s accompanying statement, which was very similar to December’s, were:

  • Cash Rate unchanged at 1.5%

  • Will set monetary policy to support sustainable economic growth

  • Labour market remains strong, skills shortages in some areas

  • Low rates supporting economy

  • Some pickup in wages growth is a welcome development

  • Progress on unemployment, inflation expected to be gradual

  • Inflation remains low and stable

  • Central scenario for underlying inflation 2% in 2019, and 2.25% in 2020

  • Housing markets in Sydney, Melbourne are soft

  • Credit conditions for some borrowers have tightened

  • Expects further lift in wages over time, but at a gradual process

  • Downside risks to global economy have increased

  • GDP data paints a softer picture of economy than labour data

  • Growth in household consumption affected by protracted period of weakness

  • Board to monitor developments, set policy to support growth

  • Drought in parts of the country has affected farm output

  • AUD has remained in a narrow range

  • The AUD is a little lower in immediate response.

Below is the link to the RBA statement:


Earlier today, Building Approvals hit the cover off the ball in recording a +19.1% increase for February, compared with -1.8% forecast.

Current indicative levels are:

AUD-USD        0.7090 / 0.7115
AUD-EUR         0.6325 / 0.6350
AUD-GBP        0.5420 / 0.5445
AUD-JPY            79.00 / 79.25
AUD-NZD        1.0465 / 1.0490

The next RBA Cash Rate policy meeting will be held on Tuesday 7th May 2019.

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