Australia Inflation Rate

Australia Inflation Rate

Australia Leaves interest rates at record low 1.5% in June 2018
Adrian Adrian

The Reserve Bank of Australia has decided to leave interest rates unchanged at 1.5% after it's meeting in June.  This was expected as inflation is expected to remain low for some time and the economy is projected to grow slightly above 3% during 2018 and 2019.

The growth in employment, low growth in labour costs and a competitive retail market has mean inflation stayed relatively low, the dollar is in it's two year range.  The forecast for DPI is just above 2%, although this is expected to pick up as the economy strengthens.  

The house market has slowed in Sydney and Melbourne and is relatively unchanged over the last six months across the nation, some areas are reporting falls in prices and the growth of credit has also slowed.  Household debt still remains high and further tightening of lending may become necessary.