The Reserve Bank Update

The Reserve Bank of Australia left the cash rate unchanged at a record low of 1.5 percent during the meeting held on September 5th, as widely expected. Policymakers said the Australian economy is expected to pick up gradually over the coming year, supported by improving outlook of non-mining investment, while inflation is estimated to rise as the economy strengthens.

Employment growth has been stronger over recent months and has increased in all states.

Wage growth remains low. This is likely to continue for a while yet, although stronger conditions in the labour market should see some lift in wages growth over time.

The low level of interest rates is continuing to support the Australian economy. Taking account of the available information, the Reserve Bank Board judged that holding the stance of monetary policy unchanged at the last meeting would be consistent with sustainable growth in the economy and achieving the inflation target over time.

Are your financial circumstances positioned to take advantage of current sound economic conditions?

Carl Thompson – Commercial Lending Specialist, Strategic Investor Group