RBA's cash rate fails to budge this November
- Marvin Ford
When it comes to Australia, UBS said that the Reserve Bank of Australia (which held the cash rate at 1.5 per cent for the 14th month in a row yesterday) will continue to "lag" the normalisation of global monetary policy.
The central bank has opted for the safe bet and left interest rates on hold, as it continues to balance its expectations of improving economic growth with weak wages growth and high household debt.
Governor Philip Lowe said while the outlook for the overall economy was still positive, partly because of public infrastructure spending, there were issues around the household sector.
The, which measures the greenback's strength against a trade-weighted basket of six major currencies, was up 0.18% at 94.80 by 02:10 a.m. ET (06:10 GMT).
And the RBA may tread lightly before raising rates, Lawless indicated, with Australian households highly indebted.
Pirlo Announces Retirement From Football
The 38-year-old passing wizard played his final match on Sunday when New York City FC lost in the Major League Soccer playoffs. He also led his former club AC Milan to two Serie A titles before moving to Juventus with whom he won yet another title.
While inflation has lifted a little over recent months, Dr Lowe said this was due to two areas - tobacco and electricity.
"In underlying terms, inflation is likely to remain low for some time, reflecting the slow growth in labour costs and increased competitive pressures, especially in retailing".
The bank repeated that an appreciating exchange rate would be expected to result in a slower pick-up in economic activity and inflation than now forecast.
Economists warn that any lift in interest rates would hit consumers, leading to slower economic growth and reduced employment opportunities.
Following its regular monthly meeting, the RBA left the official cash rate at 1.5 per cent, the same it has been since August past year.