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.”
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