RBA Announcement - November 2018

Shortly before the horses jumped in the 2018 Melbourne Cup, the Reserve Bank of Australia (RBA) announced its November interest rate decision.

In complete contrast to the Cup, there was no doubt as to what the result was to be — the Reserve Bank Board maintained the official cash rate at a record low 1.50% for a 25th straight meeting, with rates having remained untouched since August 2016 - a stretch that’s likely to remain unbroken in the near term.

In his monetary policy decision statement, RBA Governor Philip Lowe maintained that low interest rates were continuing to support the economy, but he also addressed one of the main pre-decision talking points - the most recent inflation results.

"Inflation remains low and stable. Over the past year, CPI inflation was 1.9 per cent and, in underlying terms, inflation was 1¾ per cent. These outcomes were in line with the Bank's expectations and were influenced by declines in some administered prices due to changes in government policies," he said.

"Inflation is expected to pick up over the next couple of years, with the pick-up likely to be gradual. The central scenario is for inflation to be 2¼ per cent in 2019 and a bit higher in the following year."

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