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
21 Nov 2017Carwardine Financial completes compliance reviewBy Staff Reporter
21 Nov 2017Benchmark goes into liquidationBy Aleks Vickovich
21 Nov 2017Goals-based retail super product launchedBy Staff Reporter
21 Nov 2017DomaCom strikes deal with Moody’s AnalyticsBy Staff Reporter
21 Nov 2017Netwealth lists on ASXBy Tim Stewart
21 Nov 2017Perpetual announces departure of CEOBy Staff Reporter
- view all