Reserve Bank of Australia Keeps Interest Rates at 1.5%
By James Glynn
SYDNEY--Australia's central bank kept interest rates unchanged Tuesday for an 18th straight meeting.
The Reserve Bank of Australia held its official cash rate at a record low 1.5%, citing expectations of continued benign wage growth and inflation this year.
"Notwithstanding the improving labor market, wages growth remains low. This is likely to continue for a while yet," RBA Gov. Philip Lowe said in a statement accompanying the decision.
"Inflation is likely to remain low for some time, reflecting low growth in labor costs and strong competition in retailing," he said, adding that inflation is expected to pick up as the economy strengthens. The central banks forecast is for the CPI to be a bit above 2% in 2018.
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