The Reserve Bank of Australia kept its policy unchanged at its last meeting, in line with most market expectations. The MPC members voted in favor of keeping interest rates unchanged at 1.5% historically low since the August 2016 meeting.
The Australian Reserve said through the interest rate statement that wage growth is likely to continue to weaken in the near future as inflation is low and that the rise in the Australian dollar will continue to weigh on price pressures in the near future.
The Australian Reserve continued to maintain its economic growth forecast at an annual rate of 3%, but there are some concerns that the dollar's appreciation may affect these estimates. Although there is no specific timetable for the bank to change interest rates, most expectations suggest that the next step will be to raise interest rates.