subscribe to our newsletter
Reserve Bank announces cash rate decision

Reserve Bank announces cash rate decision

Reporter
03 November 2015

Following mounting speculation of an interest rate cut before the end of the year, the Reserve bank of Australia has now revealed the outcome of its November board meeting.

The RBA has decided to leave the official cash rate unchanged at 2 per cent for the sixth consecutive month.

NAB group chief economist Alan Oster said that local data are still improving and that it was time to “wait and see if any weakness emerges from recent banks’ out-of-cycle rate rises on housing”.

ING Direct’s head of treasury, Michael Witts, agreed that the RBA continues to express the view that current interest rate levels are about right and that “interest rates alone are not the only policy tool”.

Prior to the RBA announcement, Westpac chief economist Bill Evans said it seemed unlikely the RBA would move immediately to offset bank rate rises with a 0.25 per cent rate cut.

“However, last week we noted the historical precedent of 2012 when the RBA cut by 0.5 per cent in May following increases of only 0.10 per cent in variable mortgage rates by the banks,” he said before the announcement.

St George group senior economist Janu Chan likewise predicted interest rates would remain the same.

“Some risks to the global economy have risen, but the RBA is becoming increasingly confident with the transition from mining to non­mining sectors of the economy,” said Ms Chan.

“The RBA does not seem inclined to move rates anytime soon.”

Reserve Bank announces cash rate decision
smsfadviser logo
join the discussion

Do your clients plan to add additional members to their SMSF if the new six member limit is passed as law?

SUBSCRIBE TO THE
SMSF ADVISER BULLETIN

Get the latest news and opinions delivered to your inbox each morning

In this month's issue:

  • Time wrap
  • The tech bull run
  • From hobby to passion
  • Golden Years
  • An untimely reminder
  • Why change is so difficult
  • Key Strategies for equalising super