Learn To Invest
Stocks Special Reports LICs Credit Funds ETFs Tools SMSFs
Video Archive Article Archive
News Stocks Special Reports Funds ETFs Features SMSFs Learn


RBA on hold, still concerned by rising $A

Melissa Jenkins  |  05 Sep 2017Text size  Decrease  Increase  |  
Email to Friend

Page 1 of 1

MELBOURNE - [AAP] The Reserve Bank has kept the official cash rate on hold at 1.5 per cent and repeated its concern that an appreciating Australian dollar could slow economic growth.

RBA governor Philip Lowe said a higher exchange rate is weighing on the outlook for economic output and employment, and appreciation would likely result in a slower pick up in economic activity and inflation than currently forecast.

The Australian dollar dipped in the minutes following the RBA's rates announcement to 79.5 US cents, though recovered to be trading at 79.62 US cents at 1500 AEST.

Dr Lowe repeated his remarks from his August statement that wage growth remains low, though he forecast an improvement.

"Wage growth remains low. This is likely to continue for a while yet, although stronger conditions in the labour market should see some lift in wages growth over time," he said in his statement on Tuesday.

"Inflation also remains low and is expected to pick up gradually as the economy strengthens."

Dr Lowe also repeated his comments that there were indications the housing market was cooling, and singled out Sydney.

Email to Friend
Market News and Views Sign up today and receive our free Morning Note e-newsletter, daily in your inbox.

"Housing prices have been rising briskly in some markets, although there are signs that conditions are easing, especially in Sydney," he said.

"In some other markets, prices are declining."


AAP logo image

© [2017] Australian Associated Press Pty Limited (AAP) or its Licensors. This is the Morningstar service with content provided by AAP where indicated. AAP reserves all rights, including copyright, in services provided by it. The information in the service is for personal use only, does not constitute financial product advice (whether general or personal) and may not be re-written, copied, re-sold or re-distributed, framed, linked or otherwise used whether for compensation of any kind or not, without the prior written permission of AAP. You should seek advice from a professional financial adviser before making decision to acquire or dispose of a financial product.

This service is published for general information purposes only without assuming a duty of care. AAP is not in the business of providing financial product advice (whether personal or general advice), and gives no warranty, guarantee or other representation about the accuracy of the information or images contained in this service. AAP is not liable for errors, omissions in, delays or interruptions to or cessation of the services through negligence or otherwise. The globe symbol and "AAP" are registered trademarks.

Email To Friend