The Reserve Bank of Australia announces its monetary policy decision - 4 September 2018
- Prior decision 1.50%
- Low rates are supporting the economy
- Progress on unemployment, inflation expected to be gradual
- Household consumption remains a source of uncertainty
- Housing markets have slowed in Sydney, Melbourne
- Wage growth remains low
- Pickup in wages expected to be gradual
- GDP growth to average a bit above 3% in 2018, 2019
- Business conditions are positive
- Some lenders have raised mortgage rates but average rate still lower than a year ago
- AUD remains in range of past couple of years
- AUD has fallen against USD, along with most other currencies
- Economy estimated to have grown above trend in 1H 2018
There isn't much change to the language here compared to August. The aussie is inching a little higher though but that's more due to the fact that the RBA hasn't really shown too much concern to the global trade situation as well as slowing housing markets in my view.
But as for the bigger picture, we're still not anywhere near a rate change from the RBA as the key areas are still yet to show any signs of significant improvement - being inflation, wages, household consumption.
