Rates stay on hold

THE Reserve Bank of Australia may not begin lifting interest rates until 2019 after reinforcing its expectations for only gradual improvement in wages growth and inflation over the year ahead.

The central bank’s cash rate remained at a record low of 1.5 per cent for a 19th consecutive month yesterday after its board decided to make no change. Governor Philip Lowe’s accompanying statement again portrayed optimism for the global economy and domestic jobs market, and noted the slowing growth in home prices.