Breaking: The RBA has held interest rates at 0.1 per cent, as a federal election looms where cost of living will be top of mind for voters | swrighteconomy rachelclun
The Reserve Bank has held interest rates steady despite a strong jobs market and growing inflation pressures, as the major parties prepare to fight a federal election campaign with the cost of living top of mind for voters.
Dr Lowe said while inflation had lifted, wages growth had largely failed to rise appreciably. But he noted the bank would be looking at upcoming inflation and wages costs as it considered future interest rate movements. The bank, which famously lifted interest rates just days out from the 2007 federal election, wants to see unemployment drop below its current 4 per cent rate to push wage growth above 3 per cent.Dr Lowe said while inflation had lifted, and would likely go higher in the coming months, it was still lower than in many other nations.
ANZ head of Australian economics David Plank said inflation expectations eased 0.6 percentage points last week to 5.8 per cent as petrol prices plummeted from a weekly average of more than $2.10 a litre in mid-March.
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