The Reserve Bank of Australia has once again decided to leave the official cash rate on hold at a record low of 1.50%, as widely expected.

Slow wages growth, low inflation and a high Australian dollar were cited by economists as reasons why the cash rate would continue to remain on hold.

However, a statement from the RBA Shadow Board said “favourable economic data” suggests the interest rates “will not remain low for much longer”.

A statement released from the RBA today said,

“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.”

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

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