RBA rate announcement

The Reserve Bank of Australia has announced the outcome of its first board meeting of the year.

The RBA has announced it will be keeping the cash rate on hold at 2.5 per cent, a move which has been labelled unsurprising by RP Data’s national research director Tim Lawless.

“The decision by the Reserve Bank to keep the cash rate on hold came as no surprise, with a raft of positive data flows over recent weeks,” Mr Lawless said.

“The improved housing market conditions have provided a substantial flow on effect to the housing construction sector as developer confidence improves with housing market conditions,” he added.

“We expect housing market conditions to remain buoyant while mortgage rates remain so low, however further rate cuts are looking like an outside bet at best.”

As reported in SMSF Adviser’s sister publication Smart Property Investment, a survey completed by finder.com.au showed Australia’s leading economists unanimously expected no change in the cash rate today.

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