The Reserve Bank of Australia (RBA) at its December monetary policy meeting held today, kept the official cash rate (OCR) on hold at a record low of 1.50 percent for the twenty-sixth straight meeting.
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.”
With regard to the inflation level, the RBA added: “Inflation remains low and stable. Over the past year, CPI inflation was 1.9 per cent and in underlying terms inflation was 1¾ per cent. Inflation is expected to pick up over the next couple of years, with the pick-up likely to be gradual. The central scenario is for inflation to be 2¼ per cent in 2019 and a bit higher in the following year.”
On the exchange rate value: “The Australian dollar remains within the range that it has been in over the past two years on a trade-weighted basis.”
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