The Reserve Bank of Australia announces its monetary policy decision - 5 June 2018
- Prior decision 1.50%
- Unchanged policy consistent with sustainable economic growth
- Consistent with meeting CPI target over time
- Level of interest rates continue to support the Australia economy
- Expects economic growth to pick up to average above 3% in 2018, 2019
- Inflation likely to remain low for some time
- Wage growth appears to have troughed
- Wage growth remains low, likely to continue for a while yet
- Appreciating AUD would be expected to result in slower pick up in economy, inflation
- AUD remains within range from past 2 years
- Housing markets in Sydney, Melbourne have slowed
- Macroprudential measures helpful in containing build up of household debt
- Household consumption remains a source of uncertainty
- There are concerns about direction of international trade policy in the US
- There are concerns about economic developments in a few emerging markets
Pretty much a repeat of the May policy decision. As expected, a non-event by the RBA this time around and expect more of the same to come in the next few meetings too.
Interesting to note that they brushed aside the falling house prices. I'm not too sure they can continue to do so if the trend persists as we continue into the second half of the year.
AUD barely budged from the statement and decision, and rightfully so. This is about as mundane as it can get.
