RBA holds cash rate for September

The current cash rate is at a historic low, after it was implemented in July after the second consecutive rate cut.

The RBA’s move to maintain the rate was widely anticipated by rate experts, as found in a Finder survey.

However, the majority (61 per cent) of experts have tipped a further cut for November, with Finder finding three quarters or 76 per cent of specialists and economists expect the rate to drop before Christmas.

Around 59 per cent of experts expect the rate to drop to 66 cents or lower.

Graham Cooke, insights manager at Finder, said he had never seen such a strong bias towards a move in a particularly month, as predictions are usually spread out over a couple of months.

Since 1990, the cash rate has dropped 10 times in November.

Results from Finder’s Economic Sentiment Tracker, which gauges five indicators – housing affordability, employment, wage growth, cost of living and household debt – all tipped more negative this month.

September’s results have seen the tracker at a record low for economic sentiment in household debt (10 per cent).

The RBA hinted last week in its four-year corporate plan that Australia’s high debt levels could complicate its monetary policy.

Housing affordability was the only metric Finder found respondents had a semi-positive outlook in its sentiment tracker.