The RBA had its monthly meeting today and has decided to keep the cash rate on hold at 1.5%.
It was more or less business as usual for the RBA meeting with not much changing globally hence the cash rate remained as is. In order for interest rates to rise we need wages growth which is happening but very slowly and not enough to warrant a cash rate hike.
Bullet points from the RBA meeting:
- Global economy expanding and unemployment low in most advanced economies
- Global inflation is low
- Australian economy is performing well
- GDP growth at 3.5%
- Higher levels of public infrastructure supporting economy and job growth
- Unemployment is lowest in 6 years which will lead to wages growth
- Inflation low and stable at 1.9%
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