Economics
Australia Keeps Rates on Hold Despite Pressure from Property Slump
- Data in last two months show clouds gathering over consumers
- Rate remains at record-low 1.5 percent as widely expected
A man exits the Reserve Bank of Australia headquarters in Sydney, Australia.
Photographer: Brendon Thorne/BloombergThis article is for subscribers only.
Australia’s central bank stared down calls to shift to a neutral bias amid a slumping property market, leaving its interest rate at a record low while acknowledging that downside risks have increased at home and abroad.
Governor Philip Lowe struck a more cautious tone at the Reserve Bank’s first board meeting of the year and slightly lowered key forecasts, saying “the main domestic uncertainty remains around the outlook for household spending and the effect of falling housing prices in some cities.”