RBA announces monthly cash rate decision
After three months of keeping the official cash rate on hold, the RBA has today announced the outcome of its monthly board meeting.
As predicted by 97 per cent of economists in a finder.com.au survey, the official cash rate will remain on hold for a fourth month at 2 per cent.
“Not much has changed since the last meeting and the Statement of Monetary Policy when the Reserve Bank seemed reasonably comfortable with current monetary settings,” said AMP Capital’s chief economist Shane Oliver.
“While on balance I think the Reserve Bank will need to cut interest rates again, I also think it’s a very close call as there is evidence that the economy is rebalancing and of course rates are already very low.”
CoreLogic RP Data’s head of research, Tim Lawless, said home owners and prospective buyers across Australia will welcome the sustained low interest rate setting.
“[This] will continue to spur buyer demand and help to offset the effects of softer economic conditions outside of Sydney and Melbourne,” Mr Lawless said.