Etairos Accounting and Finance
we guide you to a better future
Etairos Accounting and Finance
Strength in Numbers
Interested to know how an SMSF
can work for your future?
Are you looking for something better from your
Accounting and Finance experience?

RBA keeps rates on hold again

Added on by

 

The Reserve Bank of Australia (RBA) has left the official cash rate on hold at a record low 1.5 per cent at its first meeting of the year, citing continuing concerns about weak household consumption. 

The central bank said data over the summer had been consistent with its central forecast for gross domestic product growth to pick up to average a bit above 3 per cent over the next couple of years. The RBA noted that the outlook for household consumption was a "continuing source of uncertainty".

Business conditions were positive and the outlook for non-mining investment had improved, while increased public infrastructure investment was also supporting the economy. "The low level of interest rates is continuing to support the Australian economy," governor Philip Lowe said in a statement on Tuesday."Further progress in reducing unemployment and having inflation return to target is expected, although this progress is likely to be gradual."

However, the RBA noted that the outlook for household consumption was a "continuing source of uncertainty", with household incomes growing slowly and high debt levels. Earlier data showed retail sales eased more than expected in December after a barnstorming couple of months, but still posted a smart rebound in the final quarter of 2017 in a positive sign for household consumption and economic growth. Consumer spending has been under pressure from record-high household debt and sluggish wage growth, one reason the RBA has been in no rush to raise interest rates.

(Source: Sydney Morning Herald, 6 February 2018)




Latest from the blog

Small Business COVID-19 Adaption Grant Program 25 June 2020

  The objective of this program is to support small businesses subject to closure or highly impacted by the coronavirus (COVID-19) shutdown... READ MORE

Time for Tax Planning 22 May 2020

Want to save on tax ...   It's time to act The purpose of this newsletter is to highlight each of the tax planning... READ MORE

Happy Clients 07 May 2020

These guys have saved my bacon during covid19. Took a lot of the stress out of being self employed and parked up due to lockdown.Not only reduced my... READ MORE

“Jaeneen's commitment to getting the right result for her clients, in the fastest possible time, is virtually unparalleled in my years of experience. ” more testimonials

Matthew Rae, Credit Manager - Iden Group

Call  1300 55 22 30  now