The Reserve Bank of Australia kept interest rates unchanged at 1.5%. The following is a summary of the interest rate statement:
- Low interest rates continue to support the Australian economy.
- Inflation is likely to remain low for some time, reflecting low wage growth and strong retail competition.
- Progress in unemployment and inflation is expected and most likely will be gradual.
- The Australian economy is expected to grow at a faster pace in 2018 than 2017.
- Household consumption continues to be a source of uncertainty.
- Unemployment is expected to fall gradually.
- Wage growth is likely to be weak for some time.
- A rise in the Australian dollar could lead to a slowdown in economic growth and inflation.
- Housing markets in Sydney and Melbourne have slowed.
- Investment outlook in the non-mining sector improved.
- Investment in public infrastructure supports the economy.
