Reserve Bank of Australia keeps cash rate on hold for record 16th straight month

SYDNEY, Dec. 5 (Xinhua) -- The Reserve Bank of Australia (RBA) has decided to keep the country's interest rate on hold at 1.5 percent on Tuesday, where it has remained for a record 16 straight months.

RBA Governor Philip Lowe said although employment growth had been strong over 2017, low wage growth and inflation were causing uncertainty and hindering any moves to increase the cash rate higher.

"One continuing source of uncertainty is the outlook for household consumption," Lowe said.

"Household incomes are growing slowly and debt levels are high."

With little room to ease interest rates any lower and an economy failing to advance far enough to support a hike, it appears a rate increase will remain unlikely for quite some time.

Capital Economics chief Australia and New Zealand economist Paul Dales believes the cash rate might not move higher until 2019, calling the RBA's forecast for growth "too optimistic."

"We've had a period where retail sales have been unusually weak over the last few months," Dales said.

"And there has been softer news on GDP figures and net exports for the third quarter."

The Australian dollar was virtually unchanged by the monetary policy decision and was buying 76.44 U.S. cents shortly after the read at 14:35 (AEDT). Enditem