eNews - February 2017
This month, the Reserve Bank of Australia met for its first meeting for the year and elected to keep the official cash rate on hold at 1.5%.
A strong Australian dollar, subdued inflation, and a low gross domestic product (GDP) figure for September 2016 have meant the board is waiting for stronger indications of the country’s economic performance before shifting the rate.
CoreLogic head of research Tim Lawless said the strength of the housing market and the consistent rise in investment activity since the last round of rate cuts lay behind the RBA’s hold decision.
As the official cash rate has been at an all-time low for some time now, economists are undecided about where the RBA will take it next. It seems likely that the RBA will wait to see if our economy continues to improve and for global economic developments before making any further changes, which could mean the official cash rate stays on hold for quite some time.
Until next time.