RBA Keeps Rates On Hold — Which Probably Where They'll Stay For Awhile

Earlier this week, the RBA maintained their current interest rate policy of 1.5%, their level since 2Q16.  There is nothing in the bank’s statement to imply a rate hike is forthcoming: growth is moderate; an unemployment rate over 5% indicates some degree of labor market slack remains while inflation shows no sign of meaningfully accelerating above 2%. Also containing potential rate increases is the heightened possibility of trade issues, which would slow global growth.