The Reserve Bank has kept official interest rates on hold at the record low of 1.5 per cent.

Key points:

  • RBA keeps interest rates on hold for 18th consecutive meeting, the equal longest run since the bank’s independence
  • RBA statement says GDP growth will now be faster than 2.4pc, rather than the 3pc it mentioned earlier
  • Volatility caused by US trade policy and tighter credit globally are mounting concerns for the RBA

It is the 18th consecutive board meeting where the RBA has not budged from its emergency setting.

The non-move equals the previous longest stint without rates changing since the RBA became independent from Federal Treasury, set between January 1995 and July 1996.

The RBA last moved in August 2016 with a 0.25 percentage point cut.

Despite many economists believing the RBA had lost some conviction in its GDP growth forecasts, the decision was widely expected.

Futures markets had priced in a 0 per cent chance of a change.

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