In a widely anticipated decision, the Reserve Bank of Australia (RBA) announced it will leave the cash rate on hold in June at 1.5% following its latest meeting on Tuesday.
The statement released by RBA Governor Philip Lowe echoed much of the sentiment of last months decision, namely;
- The broad-based pickup in the global economy is expected to continue
- Headline inflation rates in most countries have moved higher over the past year and financial markets have been functioning effectively
- Domestically, the transition to lower levels of mining investment following the mining investment boom is almost complete
- Business investment is picking up, with economic growth expected to increase gradually over the next few years at just above 3 per cent
- Labour market indicators remain mixed, although continued growth in employment is expected, albeit lower wage growth
- Housing market conditions vary considerably around the country, with prices rising in some markets, and stabilising or easing in others
Taking these conditions into account, the Board judged that “holding the stance of monetary policy unchanged would be consistent with sustainable growth in the economic and achieving the inflation target over time.”
The full RBA statement can be found here.