Australia Holds Rates as Inflation Speeds Up, Stimulus Signs Mount
- Central bank keeps rate at 1.5% as expected by all economists
- Headline inflation returned to bottom end of RBA’s target
RBA Leaves Cash Rate Target Unchanged at 1.5 Percent
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Australia kept interest rates unchanged as faster inflation and signals of looming fiscal stimulus combine with an upswing in global growth.
“Above-trend growth is expected in a number of advanced economies,” Reserve Bank of Australia Governor Philip Lowe said in a statement announcing the decision Tuesday. “The improvement in the global economy has contributed to higher commodity prices, which are providing a significant boost to Australia’s national income.”