The Reserve Bank of Australia has elected to keep the cash rate steady at 1.50 percent at its third board meeting of the year, extending the streak with no move in either direction for a record 20 months in a row.

High household debt and weak consumption spending as a result of sluggish wage growth has kept the bank from moving on rates.
In his statement, RBA governor Philip Lowe said the current “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.”

“One continuing source of uncertainty is the outlook for household consumption, although consumption growth picked up in late 2017. Household income has been growing slowly and debt levels are high”

Notably, there was also mention of increased volatility in stock markets as a result of concerns about US trade policy and tightening credit markets.

Please click here to continue reading the full statement from the RBA.

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