RBA reveals cash rate decision
After 22 consecutive months of keeping interest rates on hold, the Reserve Bank has announced the official cash rate for July.
As widely predicted, the RBA board has again decided to keep the cash rate unchanged at 1.5 per cent.
All 31 of the experts and industry commentators on finder.com.au predicted that rates would remain on hold for July.
AMP chief economist Shane Oliver said there is no strong case to move interest rates either way.
“Signs that mining investment may be bottoming, strengthening non-mining investment, surging infrastructure spending and rising export volumes all argue against a rate cut,” said Mr Oliver.
“[However], peaking housing investment, uncertainty around consumer spending, continuing weak wages growth and inflation, falling Sydney and Melbourne property prices, tightening bank lending standards and global uncertainty around trade all argue against a hike.”
ABC Bullion chief economist Jordan Eliseo said the RBA’s view on monetary policy is clearly changing, with a more dovish tone pushing back the time frame for rate hikes or even opening the door to an eventual rate cut.
“Growth figures and employment levels are still reasonable though, so they'll continue to take a wait and see approach for now,” said Mr Eliseo.
St George senior economist Janu Chan said ongoing strong conditions in the business sector and the high level of public infrastructure spending will support economic activity and employment growth.
“However, there is ongoing spare capacity in the labour market and wage growth and inflation is expected to remain low.”