After members of the Reserve Bank of Australia decided to keep the interest rate unchanged at 1.50% over the past period, a statement issued by the quarterly bank to be a clearer picture of the intentions of the Bank and its economic aspirations in the coming period. The main points of the statement were as follows:
- The labor market sector recorded strong growth throughout 2017.
- Unemployment rates were stabilizing at fairly high levels.
- If participation rates stabilize in the sector, unemployment rates may fall further, which the Bank looks forward to in the coming months.
- Inflation rates remain stable at the lowest levels desired by the Bank, which target 2% to 3%.
- The bank is not expected to change its expansionary monetary policy for some time.
- Inflation has recently stabilized near the desired levels.
- As the labor market continues to improve, we expect inflation to rise in the coming period.
- Retail sales and consumption continue to suffer downside risks.
- The labor market sector has recently stabilized.
- The export sector is expected to benefit from improved global conditions.
- Commodity prices rose significantly.
- Aussie's rise is due to weak US rival.
- Higher exchange rate may hurt business activity.
