By Chris Koutoumas
The Reserve Bank of Australia has decided to keep interest rates steady today, announcing at their monthly monetary meeting that the official cash rate will remain untouched at a record low of 1.5%.
The RBA hasn’t raised official interest rates since late 2010, while rates have remained stagnant since August 2016 – the longest spell of policy inertia to date.
While last year economists were predicting interest rates to finally rise in early 2018, most backtracked and now believe a rate hike won’t occur until later this year.
For the past few months, governor Philip Lowe has maintained that sluggish wage growth and only gradual inflation has required the central bank to maintain a conservative approach to the cash rate.