By Philip Lowe, Governor: Monetary Policy Decision
The Board decided to leave the cash rate unchanged at 1.00 per cent.
The outlook for the global economy remains reasonable.
The persistent downside risks to the global economy combined with subdued inflation have led a number of central banks to reduce interest rates this year and further monetary easing is widely expected.
The Australian dollar is at its lowest level of recent times.
Inflation to increase gradually, but it is likely to take longer than earlier expected for inflation to return to 2 per cent.
Wages growth remains subdued and there is little upward pressure at present, with strong labour demand being met by more supply.
Conditions in most housing markets remain soft, although there are some signs of a turnaround, especially in Sydney and Melbourne.
It is reasonable to expect that an extended period of low-interest rates will be required in Australia to make progress.
The Board will continue to monitor developments in the labour market closely and ease monetary policy further if needed to support sustainable growth in the economy and the achievement of the inflation target over time
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