The Reserve Bank of Australia (RBA) interest rate decision has been announced today. As widely expected, the RBA has left rates unchanged. What is the official cash rate? Learn this from the 6 March RBA Interest Rate Decision Overview.
6 March, GKFX – The Reserve Bank of Australia (RBA) at its monetary policy meeting today, left the official cash rate (OCR) on-hold at a record low of 1.50%, as widely anticipated.
6 March RBA Interest Rate Decision Overview
The RBA statement read:
“The low level of interest rates is continuing to support the Australian economy. Further progress in reducing unemployment and having inflation return to target is expected, although this progress is likely to be gradual.
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.”
RBA Inflation Level
With regard to the inflation level, the RBA added:
“Inflation remains low, with both CPI and underlying inflation running a little below 2 percent. Inflation is likely to remain low for some time, reflecting low growth in labor costs and strong competition in retailing.
A gradual pick-up in inflation is, however, expected as the economy strengthens. The central forecast is for CPI inflation to be a bit above 2 percent in 2018.”
On the exchange rate value
“On a trade-weighted basis, the Australian dollar remains within the range that it has been in over the past two years. An appreciating exchange rate would be expected to result in a slower pick-up in economic activity and inflation than currently forecast.”
This article 6 March RBA Interest Rate Decision Overview was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.
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