Reserve Bank of Australia kept unchanged its record low interest rate, highlighting that it still expects signals of higher wages and inflation. The Governing Council of the Central Bank, led by its president, Philip Lowe, decided at a 26th consecutive session to keep the base interest rate unchanged at a record historic bottom of 1.5%, justifying the expectations of the financial markets. For the last time, the bank cut its benchmark interest rate by 25 basis points in its August 2016 meeting.
“Considering the available information, the Governing Council has decided that maintaining without a change in the current monetary policy will be in line with the sustainable growth of the economy and the achievement of the inflation targets after a certain time”, said the Reserve Bank of Australia in a statement after the meeting.
The Central Bank noted that low interest rates continue to support the Australian economy.
At the same time, the Reserve Bank of Australia expressed a more positive opinion on the prospects for the Australian economy, revising its forecast for the GDP growth in 2018 and 2019. The Bank is now expecting an economic growth of 3.5% this year and next year compared with a previous growth forecast of about 3.25%.