Lowe signalling that rates unlikely to rise next year

Recent comments by Governor Lowe about the outlook for monetary policy all but confirmed that the Reserve Bank of Australia will leave interest rates at 1.5% at its final policy meeting of the year on Tuesday 5th December, and probably for a good while after that too. Indeed, if GDP growth stays below potential and inflation falls short of the RBA’s 2-3% target as we expect, rates will probably remain at 1.5% for all of 2018 and most of 2019.