The RBA has left the official cash rate on hold at 1.50 per cent at its May 2018 meeting.

The board has decided to hold the cash rate at its record low of 1.50 per cent, for a record-breaking 19th consecutive month.

Speaking recently, Mr Kent said that the decision is a product of unemployment and inflation.

“What the RBA governor has made very clear is that what we’ve seen is a gradual decline in the unemployment rate over recent years, and what we’re forecasting [is] that continues to decline — but only gradually,” Mr Kent told an industry briefing last week.