The Reserve Bank of Australia has today announced the outcome of its monthly board meeting.
The cash rate will stay on hold at 2.5 per cent, as widely predicted by economists.
Speaking to finder.com.au, AMP Capital’s chief economist Dr Shane Oliver said “not enough has happened to justify moving rates”.
"The economic data has been somewhat mixed. There have been good housing indicators, some solidness in retail sales, but nothing dramatic and certainly not enough to signal a change," he said.
“The next change will probably be a rate hike, not until around sometime June quarter next year ... There's a good chance we won't get back to 5 per cent in this cycle.”
Also speaking to finder.com.au, chief economist at the Commonwealth Bank Michael Blythe similarly said the RBA continues to indicate it wants a period of stability.
“We have the next change in November, but that will depend on the coming months,” he said.
RP Data’s research director, Tim Lawless, said the cash rate decision has come at a time when value across the housing market is continuing, albeit at a more modest pace compared to last year.
“It is looking increasingly like the official cash rate will remain at its low setting, at least for the remainder of this year, which should continue to support housing demand,” he said.
“Capital gains over the past 12 months were recorded at 10.2 per cent across the combined capital cities; however, we are expecting growth rates to moderate over the coming months as natural affordability constraints and low rental yields in the largest capital cities work to slow the rate of capital gains.”
SUBSCRIBE TO THE IFA DAILY BULLETIN
15 Dec 2017AIW Dealer Services enters EUBy Staff Reporter
15 Dec 2017New CEO appointed at Centrepoint AllianceBy Staff Reporter
15 Dec 2017FASEA education pathways provide certainty: O’DwyerBy Killian Plastow
14 Dec 2017AUSTRAC adds to list of CBA allegationsBy Killian Plastow
15 Dec 2017Get ‘independent financial advice’: Joe HockeyBy Aleks Vickovich
14 Dec 2017‘Forward-thinking’ advisers drive mFunds growthBy Aleks Vickovich
- view all