THE OFFICIAL cash rate has been left on hold, at a record low of 1.50 per cent, with the Reserve Bank of Australia (RBA) declaring “the Australian labour market remains strong”.
There’s belief the Australian economy will continue to strengthen, and there will be a lift in wages growth.
In a statement on the RBA website following Tuesday afternoon’s announcement, “the outlook for the global economy remains reasonable”.
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“Growth in international trade has declined and investment intentions have softened in a number of countries,” it explains.
At its meeting today, the Board decided to leave the cash rate unchanged at 1.50 per cent – https://t.co/dZX9AdcnQQ
— RBA (@RBAInfo) May 7, 2019
“In most advanced economies, inflation remains subdued, unemployment rates are low and wages growth has picked up.
“In Australia, long-term bond yields are at historically low levels and short-term bank funding costs have declined further. Some lending rates have declined recently, although the average mortgage rate paid is unchanged.
“The Australian dollar is at the low end of its narrow range of recent times.
“The central scenario is for the Australian economy to grow by around 2¾ per cent in 2019 and 2020.
“There has been a significant increase in employment, the vacancy rate remains high and there are reports of skills shortages in some areas.”
— 9News Australia (@9NewsAUS) May 7, 2019