PHOTO: The Reserve Bank Building at Martin Place in Sydney’s CBD

After a two month summer break, the RBA has kept interest rates on hold at 1.5 per cent. The RBA has maintained a fairly optimistic view on the economy, although noted in the statement that “downside risks” have increased.

The key question before today’s meeting was whether the RBA would remove its “hiking bias” that has been present in its commentary. The RBA hasn’t changed course, maintaining the key line that “further progress in reducing unemployment and having inflation return to target is expected, although this progress is likely to be gradual”, which featured in its post-meeting statements throughout 2018.