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.”
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