Australian reserve bank keeps interest rate unchanged at 1.5 %
TAIPEI (Taiwan News) – The Reserve Bank of Australia (RBA) kept the official interest rate unchanged at the historic low of 1.5 percent today, on the back of high household debt and relatively low consumer spending.
The decision to leave official interest rate at 1.5 percent was strongly expected by economists and analysts, as reflected by the Australian dollar being unaffected by the news.
This was the 23rd consecutive month where the official cash rate was left unchanged.
Australia currently has strong business investment and infrastructure spending, however relatively weak consumer spending, high household debt and slower than expected wage growth which dampened thoughts about raising interest rates.
The RBA expects Australia's GDP to grow by slightly more than three percent in both 2018 and 2019.
According to the RBA, despite recent global expansion, there is uncertainty in the world's economic outlook, mainly caused by the U.S.'s trade policy and country-specific growth pains in emerging markets.
RBA Governor Philip Lowe said that low interest rates were supporting the Australian economy and Australia economic targets in a press statement.