2018.06.0502:21:00UTC+00Australia’s Central Bank Stands Pat on Rates

Australia's central bank held its benchmark interest rate at its June meeting on Tuesday, in line with economists' estimates as progress on lowering unemployment and reaching inflation targets was anticipated to be “gradual”.

The Reserve Bank of Australia held its cash rate steady at 1.5 percent for the 20th consecutive month.

RBA governor Philip Lowe maintained both the domestic and global economies were gaining momentum. However, he highlighted that recent political instability in Italy and worries regarding the direction of international trade policy in the US and economic development in a few emerging market continues.

The central bank said wage growth continued to be low but that the stronger economy should observe some increase in wages growth over time. Inflation was also seen to remain low.

The central bank restated its outlook for the Australian economic growth. It anticipates gross domestic product growth to rise to a “bit above” 3 percent in 2018 and 2019.

The Aussie weakened by as much as 0.2 percent to an intraday low of $0.7624 after the decision.