FOREX TradingCharts.com

Financial News: Australia Maintains Interest Rate At Record Low

Australia Maintains Interest Rate At Record Low

11/07/2017 - 01:20:00 (RTTNews)

(RTTNews) - Australia's central bank decided to maintain its interest rate at a record low, as widely expected, on Tuesday.

The board of the Reserve Bank of Australia, governed by Philip Lowe, maintained the cash rate at 1.50 percent.

The interest rate has been at this level since September 2016. The bank had reduced the rate by 25-basis points each in August and May last year.

"Taking account of the available information, the Board judged that holding the stance of monetary policy unchanged at this meeting would be consistent with sustainable growth in the economy and achieving the inflation target over time," the bank said in a statement.

The bank's forecasts for growth in the Australian economy are largely unchanged. The central forecast was for GDP growth to pick up and to average around 3 percent over the next few years.

The outlook for non-mining business investment has improved, with the forward-looking indicators being more positive than they have been for some time, RBA observed.

Increased public infrastructure investment is also supporting the economy. However, outlook for household consumption continues to remain a source of uncertainty.

Wage growth is forecast to remain low for a while yet, although the bank said the stronger conditions in the labor market should see some lift in wage growth over time.

In underlying terms, the bank expects inflation to remain low for some time, reflecting the slow growth in labor costs and increased competitive pressures, especially in retailing.

The bank repeated that an appreciating exchange rate would be expected to result in a slower pick-up in economic activity and inflation than currently forecast.

Bill Evans at Westpac, said he doesn't expect that the need will arise to raise rates in 2018. The firm's growth outlook is much flatter than central bank projections, particularly given the assessment on household incomes and wages, Evans added.

Capital Economics' economist Paul Dales said if GDP growth and underlying inflation stay below 3 percent and 2 percent respectively next year, then the RBA probably won't raise interest rates until late in 2019.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2017 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS


Malaysia Economic Growth Likely To Remain Robust In 2018 (32 min(s), 49 sec(s) ago)
(RTTNews) - Malaysia's economy should continue to grow at a decent pace over the next year, un ...Full Story»

UK Budget Gap Widens On Debt Servicing (01 hr(s), 04 min(s), 49 sec(s) ago)
(RTTNews) - The UK budget deficit increased in October due to higher debt costs linked to rising p ...Full Story»

UK Manufacturing Order Growth Strongest Since 1988: CBI (02 hr(s), 17 min(s), 49 sec(s) ago)
(RTTNews) - UK total orders grew the most since 1988 and export order books reached the joint high ...Full Story»

RBA Chief Says No Strong Case For Near-Term Policy Adjustment (02 hr(s), 54 min(s), 49 sec(s) ago)
(RTTNews) - There is not a strong case for a near-term adjustment in monetary policy given the con ...Full Story»

Spain Trade Deficit Narrows In September (02 hr(s), 53 min(s), 49 sec(s) ago)
(RTTNews) - Spain's foreign trade deficit decreased in September from a year ago, as exports g ...Full Story»

UK Budget Deficit Widens In October (03 hr(s), 51 min(s), 49 sec(s) ago)
(RTTNews) - The UK budget deficit increased in October, the Office for National Statistics reporte ...Full Story»

Swiss M3 Growth Eases In October (04 hr(s), 08 min(s), 49 sec(s) ago)
(RTTNews) - Switzerland's money supply grew at a slower pace in October, the Swiss National Ba ...Full Story»

Hong Kong Inflation Accelerates Slightly In October (04 hr(s), 10 min(s), 49 sec(s) ago)
(RTTNews) - Hong Kong's consumer price inflation accelerated marginally in October, after easi ...Full Story»

Search

INTERNATIONAL FINANCIAL NEWS

Malaysia Economic Growth Likely To Remain Robust In 2018

11/21/2017 - 08:01 AM (RTTNews)
(RTTNews) - Malaysia's economy should continue to grow at a decent pace over the next year, un ...Full Story>>

UK Budget Gap Widens On Debt Servicing

11/21/2017 - 07:29 AM (RTTNews)
(RTTNews) - The UK budget deficit increased in October due to higher debt costs linked to rising p ...Full Story>>

UK Manufacturing Order Growth Strongest Since 1988: CBI

11/21/2017 - 06:16 AM (RTTNews)
(RTTNews) - UK total orders grew the most since 1988 and export order books reached the joint high ...Full Story>>

Spain Trade Deficit Narrows In September

11/21/2017 - 05:40 AM (RTTNews)
(RTTNews) - Spain's foreign trade deficit decreased in September from a year ago, as exports g ...Full Story>>

RBA Chief Says No Strong Case For Near-Term Policy Adjustment

11/21/2017 - 05:39 AM (RTTNews)
(RTTNews) - There is not a strong case for a near-term adjustment in monetary policy given the con ...Full Story>>

Binary Options Articles Courtesy of NADEX

These pages, and all content ©TradingCharts.com Inc and other copyright holders. Permission is not granted to redistribute charts, data, news or other information found on this site, in any manner. Although it is believed that information provided is accurate, TradingCharts will not accept liability for any loss or damage that may arise from use of the content, inability to access the website, or delay or failure of receive of any information provided through this site.