The Reserve Bank of Australia has today announced the outcome of its monthly board meeting.
The RBA has decided the cash rate will stay on hold at 2.5 per cent, continuing a “period of stability” in the Australian economy.
Speaking to finder.com.au, AMP Capital’s chief economist Shane Oliver said the outlook for the economy has not changed significantly since the August board meeting, with the exception of a spike in unemployment.
“So no need to cut and no need to tighten,” Mr Oliver said.
“Next rate will be up but probably not to mid-2015 by which time the [US Federal Reserve] will likely have started to raise rates and the Australian economy should be on a firmer footing.”
Similarly, RP Data’s research director Tim Lawless said that with inter-quarter measures of inflation indicating consumer prices are not rising rapidly, it is likely that the RBA will continue to hold interest rates at their current level for the foreseeable future.
SUBSCRIBE TO THE IFA DAILY BULLETIN
News
- 25 Sep 2018Failed advice firm was ‘a proven success story’: DalyBy Adrian Flores and James Mitchell
- 25 Sep 2018New city added to FPA’s Women in Wealth programBy Adrian Flores
- 25 Sep 2018Fund managers charging fees for underperformanceBy Eliot Hastie
- 25 Sep 2018Government minister to address AFA conferenceBy Adrian Flores
- 24 Sep 2018Accountants continue battle for advice spaceBy Adrian Flores
- 24 Sep 2018Netwealth recruits former BT managerBy Reporter
- view all
