Reserve Bank holds rates for 10th time in a row
Consequently, Australia’s household debt to GDP ratio is amongst the highest in the world.
The Reserve Bank of Australia has left its benchmark interest rate on hold for a 10th consecutive month.
The central bank decided to leave the official cash rate steady at a record low of 1.5 per cent at its June board meeting on Tuesday.
The board met on the eve of the release of March quarter GDP figures that will show whether or not Australia has beaten the Netherlands’ record for the longest run without a recession.
Despite a string of weak economic data, the RBA said it still expected future growth.
“Year-ended GDP growth is expected to have slowed in the March quarter, reflecting the quarter-to-quarter variation in the growth figures,” RBA governor Philip Lowe said in a statement released with the decision.
“Looking forward, economic growth is still expected to increase gradually over the next couple of years to a little above 3 per cent.”
Most economists expect the RBA to remain on hold at least through 2017.
