Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  News  >  Interest Rates

News : Interest Rates

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance ProfessionalsCalendarSectors 

Reserve Bank of Australia Leaves Interest Rates Unchanged

share with twitter share with LinkedIn share with facebook
share via e-mail
0
12/05/2017 | 04:55am CEST
   By James Glynn 
 

SYDNEY--The Reserve Bank of Australia has ended 2017 without a change in interest rates, with next year promising to deliver more of the same.

The central bank's board kept its cash rate target at a record low of 1.5% Tuesday as universally expected by economists.

The bank's holding pattern, stretching back to August 2016, leaves the RBA lagging many of its global counterparts, including the Federal Reserve, the European Central Bank and the Bank of England, which have already raised interest rates this year, or are preparing to reduce the level of policy accommodation.

The decision comes after RBA Governor Philip Lowe told economists in late November there was no compelling case for a change in interest rates.

When announcing the on-hold decision Gov. Lowe reiterated Tuesday that 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."

Foremost in the minds of policy makers are record low wages growth, ongoing slack in the job market and a dearth of inflation pressures.

That weakness comes with consumers reluctant to spend more, weighed down by record household debt and concerns that incomes aren't growing.

Still, there are signs of some pep building in the economy, with investment strengthening, jobs growth improving, and profits high. All that comes as business surveys indicate firms are experiencing the best conditions in 20 years.

Economists expect the impression of a two-speed economy will keep policy makers watchful, unlikely to either raise or lower interest rates for the foreseeable future.

Write to James Glynn at james.glynn@wsj.com

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news "Interest Rates"
06:39pRising U.S. bond yields pose risks to greenback
RE
05:19pFed plans would put rates 'quite a way' into restrictive area - Bullard
RE
01:24pFed minutes, supply push up euro zone bond yields
RE
11:05aIndonesia mulling tax cuts to attract bond investors - official
RE
10:21aMitsui Life to raise foreign bond holdings by $1.2 billion by March
RE
08:20aBond alarm bells may ring sooner than Italian government expects
RE
08:09aChina's Blowout Bond Sale Is Little Comfort to Junk Issuers
DJ
07:04aSouth Korea holds rates but leaves door open for November hike
RE
04:37aBank of Korea chief says decision to keep rates steady was not unanimous
RE
10/17Hurricane Florence, rising mortgage rates hurt U.S. homebuilding
RE
Latest news "Interest Rates"
Advertisement