The Reserve Bank has left the Official Cash Rate on hold at 1.75% and continues to say monetary policy will remain accommodative for a considerable period.
The comments indicate the Bank is sticking to its forecast for the first OCR hike to come in September 2019, against economist and market expectations that it might have to move earlier, in 2018.
In keeping with its recent attempts to convey a neutral tone on the future direction of the OCR, Reserve Bank Governor Graeme Wheeler said numerous uncertainties remained and that “policy may need to adjust accordingly.” And in keeping with the script, Wheeler kept to many of the themes in the Bank’s last OCR statement in May.
“Global economic growth has increased and become more broad-based. However, major challenges remain with on-going surplus capacity and extensive political uncertainty,” he said Thursday. In May, the line was only different by way of inclusion of “over recent months” at the end of the first sentence.