Reserve Bank keeps Australia’s official cash rate at historic low of 0.1 per cent

The Reserve Bank of Australia has kept the official cash rate on hold at a historic low 0.1 per cent, saying inflation and wage pressures remain subdued despite the strong recovery in the economy and jobs.

The RBA handed down the determination after the board’s latest monthly meeting on Tuesday.

The RBA reiterated it would not increase the cash rate until actual inflation was sustainably within the 2 to 3 per cent target range, up from 1.1 per cent currently.

That would require a return to a tight labour market and materially higher wage growth, which it doesn’t expect to happen until 2024 at the earliest.

More to come