Australia’s central bank keeps its ultra-low rates, upgrades forecasts for economic growth and unemployment

The Reserve Bank of Australia left its key interest rates at all-time low 0.1% for a fifth straight policy meeting and signaled that may keep its ultra-loose policy for extended period even as the economy recovers from pandemic crisis.

The central bank said that ultra-low rates will remain as long as is needed to push the inflation higher and bring down unemployment.

The RBA upgraded its outlook unemployment and economic growth, expecting the jobless rate to decline to around 5% at the end of this year and 4.5% at the end of 2022, compared to their previous forecast for 5.5% unemployment rate at the end of 2022.

The RBA also showed a brighter outlook for the Australia’s economy, shifting its growth forecast to 4.75% over 2021, from its February estimation at 3.5%.

The Australia’s economic recovery has been stronger than expected and is forecast to continue, but the central bank is still not ready to raise interest rates until 2024 the earliest, remaining in line with other major central banks, who want to run their economies hot to boost inflation which has been stubbornly low for years.