Cash rate -
* The central bank has decided to leave the cash rate unchanged at 1.50 percent.
* This decision will have implications for borrowing costs and interest rates in the home loan and mortgage industry.
Employment -
* The labor market in Australia remains strong, with the unemployment rate at 5 percent.
* A further decline in the unemployment rate is expected in the coming years.
* There are reports of skills shortages in certain areas, indicating a robust job market.
Wages -
* Wages growth has shown some improvement, driven by the stronger labor market.
* However, the pace of wage growth is expected to be gradual.
* The outlook suggests a gradual lift in wages growth over time.
Inflation -
* Inflation remains low and stable, with CPI inflation at 1.8 percent and underlying inflation at 1.75 percent. * Underlying inflation is expected to gradually increase over the next couple of years.
* Headline inflation is expected to decline in the near term due to lower petrol prices.
Housing -
* The housing markets in Sydney and Melbourne are undergoing a period of adjustment after a previous surge in prices.
* Conditions in these markets have weakened, and rent inflation remains low.
* Credit conditions have tightened for some borrowers, while demand from investors has slowed.
Economic outlook -
* The central scenario predicts the Australian economy to grow by around 3 percent this year, supported by rising business investment and infrastructure spending.
* However, some downside risks have increased, and GDP growth in the recent quarter was weaker than expected.
* The outlook for household spending and the impact of falling housing prices are key uncertainties.
Other -
* Financial conditions in advanced economies have tightened but remain accommodative.
* Market participants no longer anticipate further monetary policy tightening in the United States.
* The Australian dollar has remained relatively stable, and the terms of trade are expected to decline over time.
Cash rate -
* The Board decided to leave the cash rate unchanged at 1.50 per cent.
Employment -
* The Australian labour market remains strong with a significant increase in employment.
* The unemployment rate is at 5 percent, and further decline to 4¾ percent is expected over the next couple of years.
* There are reports of skills shortages in some areas.
Wages -
* The stronger labour market has led to a pick-up in wages growth.
* Wages growth is expected to continue gradually over time.
Inflation -
* Inflation remains low and stable. Underlying inflation is expected to gradually pick up over the next couple of years.
* Headline inflation is expected to decline in the near term due to lower petrol prices.
Housing -
* The Sydney and Melbourne housing markets are going through an adjustment phase after a previous price increase.
* Conditions in both markets remain soft with low rent inflation.
* Credit conditions have tightened for some borrowers.
* Demand for credit by investors in the housing market has slowed down.
* Growth in credit extended to owner-occupiers has eased.
* Mortgage rates remain low, and there is strong competition for high-quality borrowers.
Economic outlook -
* The global economy grew above trend in 2018 but slowed in the second half of the year.
* The outlook for the global economy remains reasonable, although downside risks have increased.
* Trade tensions and slower growth in China are sources of uncertainty.
* The Australian economy is expected to grow by around 3 percent this year, supported by business investment, infrastructure spending, and increased employment.
* Weak growth in household income and falling housing prices in some cities are domestic uncertainties.
Other -
* Financial conditions globally remain accommodative.
* The Australian dollar has remained stable.
* Long-term bond yields have declined.
* The terms of trade are expected to decline over time.
Cash rate -
* The Board decided to leave the cash rate unchanged at 1.50 percent.
Employment -
* The Australian labor market remains strong, with significant employment growth.
* The unemployment rate is at 4.9 percent. Skills shortages are reported in some areas.
* Wages growth has picked up, indicating positive developments.
Wages -
* There has been a pick-up in wages growth due to the stronger labor market.
* Further improvement in the labor market is expected to contribute to gradual growth in wages over time.
Inflation -
* Inflation remains low and stable.
* Underlying inflation is expected to gradually increase over the next couple of years.
* Headline inflation is expected to decline in the near term due to lower petrol prices, while underlying inflation is expected to remain stable.
Housing -
* Established housing markets are undergoing an adjustment phase after previous price increases.
* Conditions in housing markets remain soft, and rent inflation is low.
* Credit conditions have tightened for some borrowers.
* Demand for credit by housing market investors has slowed.
* Growth in credit extended to owner-occupiers has eased.
* Mortgage rates remain low, and competition is strong for borrowers with high credit quality.
Economic outlook -
* The global economy shows a reasonable outlook, although growth has slowed.
* Trade tensions and declining investment intentions are affecting international trade.
* In China, steps have been taken to ease financing conditions in response to slower growth.
* Global financial conditions are accommodative, with declining long-term bond yields and low risk premiums.
* Growth in corporate earnings is supporting equity markets.
Other -
* GDP growth was 2.3 percent in 2018, with softer growth in household consumption affected by weak income and housing market adjustments.
* Increased spending on public infrastructure and private investment support the growth outlook.
* Inflation is expected to gradually pick up, and the low interest rates continue to support the Australian economy.
* The Board will monitor developments and set monetary policy to support sustainable growth and achieve the inflation target.
Cash rate -
* The Board decided to leave the cash rate unchanged at 1.50 percent.
Employment -
* The Australian labor market remains strong, with significant employment growth.
* Reports of skills shortages in some areas and a high vacancy rate indicate positive conditions.
* Unemployment rate steady at around 5 percent and expected to remain around this level in the near term.
Wages -
* The strong labor market has led to a pick-up in wages growth.
* Further gradual growth in wages is expected.
Inflation -
* Inflation remains subdued, with lower-than-expected inflationary pressures in the economy.
* Underlying inflation is expected to gradually pick up, reaching 1¾ percent this year and 2 percent in 2020. *
* Headline inflation is projected to be around 2 percent this year, influenced by recent increases in petrol prices.
Housing -
* The housing market is undergoing an adjustment after previous price increases in certain cities.
* Soft conditions and low rent inflation persist.
* Credit conditions have tightened for some borrowers, and demand for credit by housing market investors has decreased.
* Mortgage rates remain low, and there is competition for high-quality borrowers.
Economic outlook -
* The global economy outlook remains reasonable, but risks are tilted to the downside.
* Growth in international trade has declined, and investment intentions have softened in several countries.
* In Australia, the economy is expected to grow by around 2¾ percent in 2019 and 2020.
* Increased infrastructure investment and improved activity in the resources sector contribute to the growth outlook.
* Household consumption is uncertain due to low income growth and declining housing prices.
Cash rate -
* The Board has decided to lower the cash rate by 25 basis points to 1.25% to support employment growth and ensure inflation is on target.
Employment -
* Employment growth has been strong, with increasing labor force participation and reports of skills shortages in some areas.
* Unemployment rate ticked up to 5.2% but the Australian economy can sustain a lower rate of unemployment.
Wages -
* Wages growth has picked up in the private sector, although overall wages growth remains low.
* A gradual lift in wages growth is expected, which would be a welcome development.
Inflation -
* Recent inflation outcomes have been lower than expected, indicating subdued inflationary pressures across the economy.
* Inflation is anticipated to pick up, particularly in the June quarter due to increases in petrol prices.
* Underlying inflation is projected to be 1¾% this year, 2% in 2020, and slightly higher thereafter.
Housing -
* Established housing markets continue to adjust after a previous run-up in prices.
* Price decline rates have slowed in some markets, and auction clearance rates have increased.
* Credit conditions have tightened, and demand for credit from investors has been subdued.
* Mortgage rates remain low with strong competition for borrowers of high credit quality.
Economic outlook -
* The global economic outlook remains reasonable, although downside risks from trade disputes have increased.
* Growth in international trade is weak, and uncertainty is affecting investment intentions in various countries. * The Australian economy is expected to grow around 2¾% in 2019 and 2020, supported by infrastructure investment and increased activity in the resources sector.
* The outlook for household consumption is uncertain due to low income growth and declining housing prices, but some growth in household disposable income is expected to support consumption.
Other -
* Global financial conditions remain accommodative, with low long-term bond yields, risk premiums, and a depreciated Australian dollar.
* The decision to lower the cash rate will assist in reducing unemployment, achieving the inflation target, and making further progress in the economy's spare capacity.
* The Board will closely monitor the labor market and adjust monetary policy to support sustainable growth and inflation target achievement.
Cash rate -
* The Board has decided to lower the cash rate by 25 basis points to 1.00 per cent.
* This follows a similar reduction at the Board's June meeting.
* The easing of monetary policy aims to support employment growth and ensure inflation aligns with the medium-term target.
Employment -
* Employment growth has remained strong, with high labour force participation and reports of skills shortages in some areas.
* However, there has been little progress in reducing the unemployment rate, which has risen slightly to 5.2 per cent.
Wages -
* Wages growth in the private sector has picked up, although overall wages growth remains low.
* A gradual lift in wages growth is expected in the future, which would be a positive development.
Inflation -
* Inflation pressures across the economy remain subdued.
* However, inflation is anticipated to pick up, particularly due to expected increases in petrol prices.
* The central scenario is for underlying inflation to be around 2 per cent in 2020 and slightly higher thereafter.
Housing -
* Most housing markets continue to experience soft conditions, although there are signs of stabilization in Sydney and Melbourne.
* Growth in housing credit has stabilized recently.
* Demand for credit from investors remains subdued, and credit conditions for small and medium-sized businesses remain tight.
Economic outlook -
* The global economic outlook remains reasonable, but uncertainty from trade and technology disputes is impacting investment and increasing downside risks.
* Most advanced economies have low unemployment rates and subdued inflation.
* The Australian economy is expected to grow around trend, supported by infrastructure investment and a pick-up in the resources sector.
* The main domestic uncertainty lies in the outlook for consumption, although growth in household disposable income is expected to support spending.
Cash rate -
* The Board decided to keep the cash rate unchanged at 1.00 per cent.
Employment
* Employment has experienced strong growth, with record-high labor force participation.
* The unemployment rate has risen slightly to 5.2 per cent, but it is expected to decline to around 5 per cent in the next few years.
Wages -
* Wages growth remains subdued, with little upward pressure and caps on public-sector pay outcomes.
* Wages growth has picked up in most advanced economies, but it remains low overall.
* Strong labor demand is being met by increased labor supply, limiting upward pressure on wages.
* A gradual lift in wages growth would be desirable.
Inflation -
* Inflation pressures across the economy remain subdued.
* Inflation is expected to increase gradually, but it may take longer than anticipated to reach the 2 per cent target.
* Inflation is projected to be slightly below 2 per cent in 2020 and slightly above 2 per cent in 2021.
Housing -
* Most housing markets continue to experience soft conditions, although signs of a turnaround are emerging in Sydney and Melbourne.
* Growth in housing credit remains low, and demand from investors is subdued.
* Mortgage rates are at record lows, and there is strong competition for borrowers with high credit quality.
Economic outlook -
* Global economic outlook remains reasonable, but increased uncertainty from trade and technology disputes poses downside risks.
* Growth in Asia has slowed due to the global trade slowdown.
* In Australia, economic growth is expected to strengthen gradually, supported by low interest rates, tax cuts, infrastructure spending, housing market stabilization, and improved prospects in the resources sector.
* Consumption outlook remains uncertain, but growth in household disposable income and a stabilizing housing market are expected to support spending.
Other -
* Global financial conditions remain accommodative, with central banks reducing interest rates and government bond yields at record lows.
* The Australian dollar is currently at its lowest level in recent times.
* Extended period of low interest rates is expected to be necessary to reduce unemployment and achieve the inflation target.
Cash rate -
* The Board has decided to maintain the cash rate at 1.00 percent.
Employment -
* Employment has experienced strong growth in recent years, with record-high labor force participation.
* The unemployment rate has remained steady at 5.2 percent.
Wages -
* Wages growth has picked up in most advanced economies, including Australia, although it remains low.
* Caps on wages growth are affecting public-sector pay outcomes.
Inflation -
* Inflation pressures remain subdued both globally and in Australia.
* Inflation is expected to be slightly below 2 percent in 2020 and slightly above 2 percent in 2021.
Housing -
* Established housing markets, particularly in Sydney and Melbourne, show signs of a turnaround.
* New dwelling activity has weakened.
* Growth in housing credit remains low, and demand for credit from investors is subdued.
* Mortgage rates are at record lows, and there is strong competition for borrowers of high credit quality.
Economic outlook -
* The outlook for the global economy remains reasonable, although risks are tilted to the downside due to trade and technology disputes.
* Australia's economic growth in the first half of the year was lower than expected, primarily due to low income growth and declining housing prices.
* The outlook for Australia's economy is gradually strengthening, supported by low interest rates, tax cuts, infrastructure spending, and a brighter outlook for the resources sector.
* The main domestic uncertainty lies in the outlook for consumption, but a pick-up in household disposable income and housing market stabilization are expected to support spending.
Other -
* Global financial conditions remain accommodative, with many central banks reducing interest rates and government bond yields at record lows.
* The Australian dollar is at its lowest level in recent times.
* Continued low interest rates are expected to be necessary to achieve the goals of reducing unemployment and reaching the inflation target.
Cash rate -
* The Reserve Bank of Australia (RBA) has lowered the cash rate by 25 basis points to 0.75 percent.
Employment -
* Employment has continued to grow strongly, with record high labor force participation.
* The unemployment rate has remained steady at around 5.25 percent, but forward-looking indicators suggest a potential slowdown in employment growth.
Wages -
* Wages growth remains subdued, with little upward pressure at present.
* Increased labor supply is meeting the strong labor demand, and caps on wages growth are affecting public-sector pay outcomes.
Inflation -
* Inflation pressures remain subdued, and it is expected to stay that way for some time.
* Both headline and underlying inflation are projected to be slightly below 2 percent in 2020 and slightly above 2 percent in 2021.
Housing -
* Established housing markets, particularly in Sydney and Melbourne, show signs of a turnaround.
* However, new dwelling activity has weakened, and growth in housing credit remains low.
* Demand for credit by investors is subdued, and credit conditions for small and medium-sized businesses are tight.
* Mortgage rates are at record lows, creating strong competition for high-quality borrowers.
Economic outlook -
* The global economic outlook remains reasonable but carries downside risks, primarily due to trade and technology disputes.
* Low interest rates worldwide and further monetary easing are expected to combat the downside risks and stimulate growth.
* The Australian economy experienced weaker-than-expected growth but is expected to recover gradually with support from low interest rates, tax cuts, infrastructure spending, housing market stabilization, and positive prospects for the resources sector.
* Consumption outlook remains uncertain, given modest growth in household disposable income.
Cash rate -
* The Board decided to maintain the cash rate at 0.75 percent.
Employment -
* Employment has experienced strong growth, accompanied by increased labor supply and record-high labor force participation.
* The unemployment rate has remained steady at around 5.25 percent.
* Lower interest rates are expected to support employment and income growth.
Wages -
* Wages growth has improved but remains subdued.
* Further gradual growth in wages would be beneficial for sustaining inflation within the target range of 2-3 percent.
Inflation -
* Inflation has been in line with expectations, with headline inflation at 1.7 percent.
* The central scenario predicts a gradual increase in inflation, reaching close to 2 percent in 2020 and 2021.
Housing -
* Established housing markets, particularly in Sydney and Melbourne, are showing signs of recovery.
* However, new dwelling activity is still declining, and housing credit growth remains low.
* Demand for credit by investors is subdued, and credit conditions for small and medium-sized businesses remain tight.
* Mortgage rates are at record lows, attracting borrowers with high credit quality.
Economic outlook -
* The outlook for the global economy remains reasonable, but downside risks persist.
* US-China trade and technology disputes continue to impact international trade and investment.
* Low interest rates, tax cuts, infrastructure spending, and improved housing market conditions are expected to support Australian economic growth.
* The main uncertainty lies in the outlook for consumption and the effects of the drought and housing construction cycle.
Other -
* Interest rates are low globally, and several central banks have eased monetary policy in response to risks and low inflation.
* The Australian dollar is at a lower level compared to recent times.
* An extended period of low interest rates is expected to be necessary to achieve full employment and the inflation target.
Cash rate -
* The Board has decided to leave the cash rate unchanged at 0.75 percent.
Employment-
* The unemployment rate has remained steady at around 5¼ percent in recent months.
* It is expected to stay at this level for some time before gradually declining.
* The Australian economy can sustain lower rates of unemployment and underemployment.
Wages -
* Wages growth remains subdued and is expected to remain at its current rate for some time.
* A gradual lift in wages growth would be beneficial for achieving sustainable inflation.
Inflation -
* Inflation is expected to pick up gradually and be close to 2 percent in 2020 and 2021.
* Current inflation levels remain low, but there are expectations of a gradual increase.
Housing -
* Established housing markets, particularly in Sydney and Melbourne, are showing signs of a turnaround.
* However, new dwelling activity is still declining, and housing credit growth remains low.
* Demand for credit by investors is subdued, and credit conditions for small and medium-sized businesses remain tight.
* Mortgage rates are at record lows, resulting in strong competition for borrowers.
Economic outlook -
* The global economic outlook remains reasonable, but some risks have diminished.
* The Australian economy has reached a turning point after a soft patch in the second half of the previous year. * Growth is expected to pick up gradually, supported by low interest rates, tax cuts, infrastructure spending, and improved housing market conditions.
* Consumption outlook, the effects of drought, and the housing construction cycle are sources of uncertainty.
Other -
* Interest rates are low globally, and several central banks have eased monetary policy.
* Financial market sentiment has improved, and long-term government bond yields are at record lows.
* The Australian dollar is at the lower end of its recent range.
* The Board is prepared to further ease monetary policy if needed to support sustainable growth, full employment, and inflation targets.
* Lower interest rates have positive effects on employment, income growth, asset prices, and household spending.
The RBA cash rate is the benchmark interest rate for the Australian economy. It is the rate at which financial institutions lend and borrow money from each other in the overnight money market, and it is used as a reference point for setting other interest rates in the economy. Read more about the RBA cash rate here.
The RBA cash rate is announced on the first Tuesday of every month, except in January, The announcement is typically made at 2:30 PM Sydney time,
On a monthly basis, the Reserve Bank of Australia (RBA) convenes to assess the cash rate and determine if any adjustments are required. These meetings are scheduled ahead of time, with the precise dates and times announced in advance. Following each meeting, the RBA promptly discloses its decisions to the public.
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