RBA holds cash rate at its record low of 0.75% at its board meeting for December 2019.

Australia’s central bank has held the official cash rate at 0.75%. The RBA opted to “wait and assess” from the impact of the three cuts delivered since June 2019. “Given these effects of lower interest rates and the long and variable lags in the transmission of monetary policy, the Board decided to hold the cash rate steady at this meeting while it continues to monitor developments, including in the labour market,” said Mr Lowe. The unemployment rate has been steady at around 5.3 per cent over recent months. It is expected to remain around this level for some time. A slight wage growth was seen, while the inflation remains low. It is tipped the Board may resort to cutting the cash rate once again in the new year.