The Reserve Bank of Australia maintains its policy as planned

At its February monetary policy meeting, the Reserve Bank of Australia (RBA), the first of this year, left the official exchange rate (OCR) unchanged at a record low of 1.50% for the twenty-seventh consecutive meeting.

The RBA's statement was: "Low interest rates continue to support the Australian economy. Further progress in reducing unemployment and returning inflation to the target is expected, although this progress is likely to be gradual. In view of the information available, the Council considered that the continuation of the monetary policy stance at this meeting would be consistent with sustainable growth of the economy and the achievement of the objective of Inflation over time. "

Regarding housing markets and the level of inflation, the RBA added: "The housing markets in Sydney and Melbourne are going through a period of adjustment after a sharp rise in prices. The situation is still weak in both markets and rental inflation remains low.

"Core inflation is expected to accelerate over the next two years, with a gradual recovery and probably a little longer than expected. The central scenario predicts core inflation of 2% this year and 2¼% by 2020. Overall inflation is expected to decline in the near term due to lower gasoline prices. "

On the value of the exchange rate: "The Australian dollar has remained in the narrow range of recent years. Terms of trade have increased over the past two years, but should deteriorate over time. "