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RBA Maintained Current Rates Amid Wage Risks


Mai, 02 2017
watermark Economic news

The Reserve bank of Australia kept their rates unchanged for nine succeeding months on Tuesday which is not surprising following the risks of household debt, meek progress in inflation and wage. The RBA decided to maintained the rates at a rock-bottom of 1.5 percent after the decline in August and May last year while most economists have foreseen that will be sustained this week.

The central bank is sanguine in the economy but maintains a mixed labor market. Although the wages growth anticipated being sluggish for some time. The price inflation lingers above 2 percent in the previous quarter for the first since 2015 although the objective of the RBA is to keep inflation rates below 2 to 3 percent but higher than 3 percent in the next few years.

RBA Governor Philip Lowe mentioned that there is no need for further stimulus since the low cash rates have affected household debt which will not be favorable for the “national interest”.


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Foreign exchange trading carries a high risk of losing money due to leverage and may not be suitable for all investors. Before deciding to invest your money, you should carefully consider all the features associated with Forex, as well as your investment objectives, level of experience, and risk tolerance.