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No change to cash rate

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RBA announces: Again no change to cash rate

For the seventeenth consecutive month The Reserve Bank of Australia has released the official cash rate which will again stay the same at 1.5%. This has been the longest period of a sustained rate in over two decades; the last time the rates were increased was in August of 2016.

Governor Philip Lowe said in a statement on Tuesday, "the low level of interest rates is continuing to support the Australian economy."

CoreLogic head of research Tim Lawless added to this, “With national dwelling values now drifting lower, the RBA can now focus more on economic trends outside of the housing market when contemplating monetary policy settings.”

Although December showed poor figures in retail sales there are indicators expressing a stable economy with rising consumer and business sentiment alongside increases in the labour market.

Moving forward Lowe noted that "further progress in reducing unemployment and having inflation return to target is expected, although this progress is likely to be gradual."

It is estimated that a change in the rate will not be likely until the middle of the year, from there however we are expected to see the basis point rise to 25 by February next year.

"The bank's central forecast for the Australian economy is for GDP growth to pick up, to average a bit above 3 per cent over the next couple of years," said governor Philip Lowe. For now, however, the Australian dollar remains with little change at US78.66¢.

For the official RBA article, please visit the Reserve Bank’s website.