RBA locks in interest rate decision for May
The Reserve Bank of Australia has announced its decision on the official cash rate for May after it its monthly board meeting.
As largely anticipated, the RBA has again decided to keep the official cash rate at the record low of 1.50 per cent.
This marks the 20th consecutive month since the cash rate moved, when the RBA dropped the official interest rate to its current level.
AMP chief economist Shane Oliver said strong business conditions and employment, rising non-mining investment, strong global growth and the RBA’s own forecasts argue against a cut.
“[On the other hand], low inflation and wages growth, risks around the outlook for consumer spending, the slowing Sydney and Melbourne property markets and tightening bank landing standards argue against a hike. So the RBA is likely to remain on hold,” said Mr Oliver.
ABC Bullion chief economist Jordan Eliseo also predicted that the RBA would keep rates steady at 1.50 per cent.
“Inflation is soft, property prices are easing, and employment growth looks to be slowing down, so we are still of a view that the next move will be a cut, though this will take some time to come through,” said Mr Eliseo.
Sunsuper chief economist Brian Parker said there was nothing in the current data to force the RBA to adjust rates one way or the other.
“Still enough labour market slack to keep them from raising rates, and they've made it clear they would be very reluctant to ease at this point,” said Mr Parker.
Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.
Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates. Miranda has also directed SMSF Adviser's print publication for several years.
Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.