RBA leaves cash rate unchanged at 1.5%


Prior decision 1.50%
Inflation likely to remain low for some time
Sees inflation picking up gradually as economy strengthens
Unchanged policy consistent with sustainable economic growth
Sees GDP growth average above 3% in 2018, 2019
Progress on unemployment and inflation expected to be gradual
Rising AUD would lead to slower economic pickup
AUD remains in range of past couple of years
One continuing source of uncertainty is outlook for household consumption
Housing markets have slowed in Sydney, Melbourne
Wage growth remains low, likely to continue for a while yet
Rate of wages growth appears troughed
Inflation figures were in line with expectations, expected to be a bit above 2% this year
Global economy has strengthened over the past year
Australia’s terms of trade expected to decline, but remain at high level