The Reserve Bank of Australia has come to a decision on the cash rate for December following its monthly board meeting.
The RBA board has again decided to leave the cash rate unchanged at 1.5 per cent.
Prior to the announcement today, ABC Bullion chief economist Jordan Eliseo said he remained steadfast in his view that the easing cycle had much longer to play out.
Mr Eliseo said he was doubtful the RBA would make any interest rate moves before Christmas. He said the Reserve Bank would wait for further data before making another rate cut in the first quarter of 2017.
BIS Shrapnel’s associate director of economics Richard Robinson said there was no need for the RBA to cut rates this month as the Australian dollar had already fallen.
“A rate cut is not desirable until the housing market starts to weaken,” Mr Robinson said.
Meanwhile, CommSec equities economist Savanth Sebastian said the Reserve Bank seemed comfortable with how the economy was evolving.
“The recent lift in commodity prices would provide more confidence that medium-term growth prospects have improved,” Mr Sebastian said.
SUBSCRIBE TO THE SMSF ADVISER BULLETIN
- 21 Aug 2016Risks flagged with real estate appraisal valuesBy Miranda Brownlee
- 21 Aug 2016Lawyer challenges ATO view on two fund strategiesBy Miranda Brownlee
- 18 Aug 2017ATO locks in details, addresses panic on real-time reportingBy Katarina Taurian
- 18 Aug 2017Data feeds unreliable for new reporting, says mid-tierBy Miranda Brownlee
- 18 Aug 2017Tax component confusion spurs potential tax liabilitiesBy Miranda Brownlee
- 18 Aug 2017Contributions triple in June quarter, survey showsBy Staff Reporter
- view all
- ATO locks in details, addresses panic on real-time reporting
The tax office has addressed several points of confusion with the new events-based reporting regime, locked in key deadlines, and outlined w...read more
- Data feeds unreliable for new reporting, says mid-tier
With an estimated 20 per cent of SMSFs still encountering errors from data feeds, one mid-tier firm believes the ATO should allow SMSF pract...read more
- view all