In Governor's statement that accompanied the decision, there were few changes from when the Board last met in August.
The RBA maintained their outlook for growth in the domestic economy to average a little over 3% in 2018 and 2019, which is expected to be supported by strengthening investment from the non-mining sectors, investment in public infrastructure and resource exports. Drought conditions, though, are impacting the farm sector. Household consumption remains an ongoing uncertainty.
The statement touched on recent weakness in the domestic currency, which it attributes to strength in the US dollar. Overall, though, it noted that "the Australian dollar remains within the range that it has been in over the past two years on a trade-weighted basis".
September's commentary on the labour market appeared more upbeat; the unemployment rate is at a near 6-year low at 5.3%, it has received reports of skills shortages in some areas and noted that wages growth has "picked up a little recently". Wages growth is expected to lift gradually in line with a tightening labour market.
Q2's Wage Price Index showed wages growth at 2.14%Y/Y, with a gradual lift over the past couple of years, although that has been boosted by strong minimum wage rises.
Commentary on the housing market was unchanged, which was a surprise to some observers given that in the past week one of Australia's major banks, Westpac, increased its standard variable mortgage rate by 14 basis points (0.14%) in response to higher wholesale funding costs, while other lenders have followed suit. Property prices also continue to decline, with yesterday's CoreLogic Home Value Index showing its 11th consecutive monthly fall on a national basis.
The final paragraph was unchanged.
Financial markets continue to push back the timing of their expectation for the next cash rate increase. Market pricing currently points to a below-50% chance of a 0.25% increase by February 2020.
