Australia's central bank holds cash rate at 1.5 pct for 31st consecutive month

Australia's central bank has decided to keep the country's interest rate on hold at the record low of 1.5 percent on Tuesday, where it has remained since August 2016.

According to Governor of the Reserve Bank of Australia Philip Lowe, a slowdown in the nation's economic performance during the second half of 2018 played a role in informing the board's decision.

"The main domestic uncertainty continues to be the strength of household consumption in the context of weak growth in household income and falling housing prices in some cities," he explained.

"The adjustment in the Sydney and Melbourne housing markets is continuing, after the earlier large run-up in prices. Conditions remain soft in both markets and rent inflation remains low."

Outside of Australia, Lowe indicated that "the outlook for the global economy remains reasonable, although downside risks have increased."

"Globally, headline inflation rates have moved lower following the earlier decline in oil prices, although core inflation has picked up in a number of economies."

"In most advanced economies, unemployment rates are low and wages growth has picked up."

With this in mind, Lowe added that Australia's domestic growth outlook is "being supported by rising business investment, higher levels of spending on public infrastructure and increased employment," he said.

(ASIA PACIFIC DAILY)