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.”
Advocacy group Super Consumers Australia has backed ASIC’s action against Equity Trustees, calling for super fund ...
After previously banning four of its advisers, ASIC has continued its enforcement spree on MWL Financial Services for ...
As the financial advice profession still attempts to claw back ground lost in the wake of the royal commission, costs ...
Never miss the stories that impact the industry.
Get the latest news! Subscribe to the ifa bulletin