Australia’s central bank holds rates, analysts tip future cut

SYDNEY, Apr 02 (AFP): Australia's central bank kept interest rates at a record low on Tuesday but said it would monitor developments as the economy stutters, with observers tipping a cut this year.
The economy grew just 0.2 per cent in the last three months of 2018 to take the annual rate of expansion to 2.3 per cent, below the Reverve Bank of Australia's forecasts.
Inflation is sitting at 1.8 per cent, which is also outside the central bank's target range of 2.0-3.0 per cent.
RBA governor Philip Lowe acknowledged weakness in both sets of economic data but said he was encouraged by the strength of the jobs market.
"The stronger labour market has led to some pick-up in wages growth, which is a welcome development," he said in a statement after a monthly board meeting, which saw the bank keep rates at 1.5 per cent, where they have been since August 2016.