Invest
RBA reveals monthly cash rate call
The central bank has announced how it will proceed with the official cash rate this month, at the conclusion of its board meeting this afternoon.
RBA reveals monthly cash rate call
The central bank has announced how it will proceed with the official cash rate this month, at the conclusion of its board meeting this afternoon.
As widely expected, the RBA kept the cash rate on hold today at 1.5 per cent.
CoreLogic head of research Tim Lawless said the housing market would have formed a key part of the RBA’s decision.
“Capital city dwelling values have increased by almost 10 per cent since the latest round of rate cuts in May and August last year, led by gains of around 13 per cent in Sydney and Melbourne,” said Mr Lawless.
Since the latest round of rate cuts, Mr Lawless said inflation has edged higher, with headline inflation moving back into the RBA’s target range of 2 per cent to 3 per cent for the first time since the September 2014 quarter.
“However inflation increases were driven largely by forces that are exogenous to domestic demand, including a 6 per cent increase in the price of fuel, and a 2.5 per cent administered increase in electricity prices,” he said.
“Coupled with continued low wage growth, this indicates that private and household demand may still be weak despite the higher inflation figures, warranting the maintenance of a low cash rate.”
ABC Bullion chief economist Jordan Eliseo said the RBA remains in no rush to cut interest rates despite the fact that most economic data has been soft, and inflation remains well controlled.
“Financial stability concerns are still a factor, though we remain of the view that there is more downside to come for rates in the next 12 months,” said Mr Eliseo.
AMP chief economist Shane Oliver said worries about excessive home prices and debt growth prevent a cut, low but “low underlying inflation and wages growth prevent a hike”.
RELATED ARTICLES
Cash
Navigating the equilibrium: Investor sentiment in the face of equity peaks and diminishing cash reserves
State Street's latest Risk Appetite Index indicates a nuanced shift in institutional investor sentiment during March, with the index reverting slightly towards neutrality. This subtle recalibration in ...Read more
Cash
RBA's November rate hike overshadows Melbourne Cup festivities
In a move that managed to draw attention away from the thrill of the Melbourne Cup, the Reserve Bank of Australia (RBA) has increased the cash rate by 25 basis points to 4.35 per cent, surprising ...Read more
Cash
RBA makes first cash rate call for 2022
The RBA has announced its first rate decision for 2022. Read more
Cash
Cash remains king for many Australians
Demand for banknotes remains high despite a decline in cash transactions. Read more
Cash
Interest rates to rise next year?
Commonwealth Bank has seconded Westpac’s predictions, forecasting that interest rates will rise well ahead of the RBA’s 2024 timeline. Read more
Cash
RBA makes latest official cash rate call
The Reserve Bank of Australia has made its May call on the official cash rate, with the economy said to be a long way from the conditions needed to precede a rate rise. Read more
Cash
RBA puts chatter of an earlier rate hike to rest
The Reserve Bank of Australia has put to rest chatter among investors that conditions for a higher cash rate could be met as early as next year, reaffirming its stance that the rate is “very likely” ...Read more
Cash
Australia tipped to go cashless by 2024
Australia is forecast to effectively go cashless in just three years, with three in 10 Aussies admitting that “going cashless would be great for the country”. Read more
Cash
Navigating the equilibrium: Investor sentiment in the face of equity peaks and diminishing cash reserves
State Street's latest Risk Appetite Index indicates a nuanced shift in institutional investor sentiment during March, with the index reverting slightly towards neutrality. This subtle recalibration in ...Read more
Cash
RBA's November rate hike overshadows Melbourne Cup festivities
In a move that managed to draw attention away from the thrill of the Melbourne Cup, the Reserve Bank of Australia (RBA) has increased the cash rate by 25 basis points to 4.35 per cent, surprising ...Read more
Cash
RBA makes first cash rate call for 2022
The RBA has announced its first rate decision for 2022. Read more
Cash
Cash remains king for many Australians
Demand for banknotes remains high despite a decline in cash transactions. Read more
Cash
Interest rates to rise next year?
Commonwealth Bank has seconded Westpac’s predictions, forecasting that interest rates will rise well ahead of the RBA’s 2024 timeline. Read more
Cash
RBA makes latest official cash rate call
The Reserve Bank of Australia has made its May call on the official cash rate, with the economy said to be a long way from the conditions needed to precede a rate rise. Read more
Cash
RBA puts chatter of an earlier rate hike to rest
The Reserve Bank of Australia has put to rest chatter among investors that conditions for a higher cash rate could be met as early as next year, reaffirming its stance that the rate is “very likely” ...Read more
Cash
Australia tipped to go cashless by 2024
Australia is forecast to effectively go cashless in just three years, with three in 10 Aussies admitting that “going cashless would be great for the country”. Read more
