The Reserve Bank of Australia has announced it will keep the cash rate on hold at 1.5 per cent following today’s April monetary policy meeting.
Markets had priced for the cash rate to remain steady, with the ASX 30 day interbank cash rate futures market giving a 98 per cent chance of ‘no change’ at 3 April 2017.
Members of the ANU Centre for Applied Macroeconomic Analysis (CAMA) RBA Shadow Board also said keeping the cash rate at 1.5 per cent made sense, with Shadow Board member and professor of economics at Macquarie University Jeffrey Sheen noting Australia’s GDP growth wasn’t currently supportive of a cash rate hike.
“The current annual GDP growth in Australia of 2.4 per cent remains tepid, reflected in continuing low wage growth as well as business investment,” he said.
“With the big lenders having raised their mortgage rates in response to the cost of foreign funds, the case for a cash rate rise has been weakened.”
After Labor has secured a somewhat surprising landslide win in the federal election, the FSC CEO said this will now be a ...
Platform executives are pushing for more advice revenue to be invested in advice tech capabilities, labelling the ...
The licensee said around 80 per cent of eligible Brighter Super members have confirmed they will transition their advice ...
Never miss the stories that impact the industry.
Get the latest news! Subscribe to the ifa bulletin