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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