High household debt and the lack of a “definitive pick-up” in wages growth were key reasons the Reserve Bank of Australia left the official cash rate steady this month, putting it on a “different” trajectory to the US Federal Reserve, according to Treasurer Scott Morrison.
In another sign monetary policy is to remain stalled in 2018, minutes of the Reserve Bank board meeting two weeks ago said there would need to be faster wage growth before inflation gathers strength.
The official cash rate has been stuck at a record-low 1.5 per cent since August 2016, a record run of policy stability in the inflation-targeting era that began in the early 1990s.
Board members indicated that the ultra-easy policy settings were helping bring…
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