2018.02.0603:20:00UTC+00Australia’s Central Bank Keeps Policy Unchanged

The Reserve Bank of Australia issued a positive outlook for the country's economy, maneuvering a stable rate path at its first meeting of 2018 even as global markets experience a downturn.

RBA's optimism was supported by strong economic data in recent weeks. It is further underpinned by solid fourth-quarter retail sales figures on Tuesday which bode well for household consumption.

Australia's central bank held rates at 1.5 percent and did not mention the rout in the global equities markets, which saw Wall Street recording its biggest intraday loss since 2011.

In the policy decision statement, RBA Governor Philip Lowe said that the low level of interest rates continues to provide support to the Australian economy. He added that further development in lowering unemployment and having inflation rise to its target is anticipated, despite being gradual.

The bank marginally revised its forecast for GDP growth upward to average “a bit above 3 percent” over the next couple of years. Lowe said the data seen over the summer have been in line with the said outlook.