RBA keeps rates unchanged, statement disappoints hawks

The RBA has decided to keep its interest rate unchanged at 1.5%, with the policy statement still remaining fairly neutral, which is a disappointment for a market that was cetainly expecting a more upbeat tone following the recent coordinated shift by the BOE, BOC and ECB. 

The RBA statement read: "Taking account of the available information, the Board judged that holding the stance of monetary policy unchanged at this meeting would be consistent with sustainable growth in the economy and achieving the inflation target over time."

With regards to the current level of rates and the value of the Aussie, the RBA added: "The outlook continues to be supported by the low level of interest rates. The depreciation of the exchange rate since 2013 has also assisted the economy in its transition following the mining investment boom. An appreciating exchange rate would complicate this adjustment."

Key headlines

RBA says judged steady policy consistent with growth, inflation targets 

RBA says house prices rising briskly in some markets 

RBA says indicators of labour demand remain mixed 

RBA says employment growth has been stronger over recent months 

RBA says some signs housing market starting to cool 

RBA says housing debt has outpaced slow growth in incomes 

RBA says supervisory measures should help address debt risks 

RBA says supervisory measures should help address debt risks 

RBA says rising a$ would complicate economic adjustment 

RBA says economic outlook supported by low rates 

RBA says wage growth remains low, likely to continue for a while yet 

RBA says inflation expected to increase gradually as the economy strengthens 

RBA says slow growth in real wages is restraining growth in household consumption 

RBA says business conditions, investment have picked up 

RBA says broad-based pick-up in global economy continuing