Powered by MOMENTUM MEDIA
subscribe to our newsletter

RBA rate announcement

The Reserve Bank of Australia has today announced the outcome of its fifth board meeting of the year.

As widely predicted, the RBA announced at 2.30pm today it will be keeping the cash rate on hold at 2.5 per cent.

“Inflation is within the target zone, so the RBA can afford to wait and see the recovery unfold,” ME Bank general manager markets John Caelli said.

“Economic growth continues to be below average, the transition to non-mining economic activity has further to go, and there will be some fiscal contraction from the Budget,” Mr Caelli said.

“We don’t see rates increasing until at least the first quarter of 2015,” he said.

Advertisement
Advertisement

All 16 economists and money experts in a recent survey by comparison website Finder.com.au expected rates to remain unchanged.

More than half of the economists and experts in the survey (nine of the 16 from AMP, ANZ, Bank of Sydney, ING DIRECT, RAMS, UBS, Heritage Bank, Moody’s Analytics and ME Bank) are forecasting the cash rate will rise next year.

Five respondents from Commonwealth Bank, Commsec, Urbis, HSBC and St George Bank expect to see a cash rate rise by the end of the year.

Ten of the 16 experts suggested the public’s reaction to federal Budget cuts will delay the change in cash rate, with nine stating the economy still has to grow in stability before any significant cash rate changes occur.

RBA rate announcement
>As widely predicted, the RBA announced at 2.30pm today it will be keeping the cash rate on hold at 2.5 per cent.

“Inflation is within the target zone, so the RBA can afford to wait and see the recovery unfold,” ME Bank general manager markets John Caelli said.

“Economic growth continues to be below average, the transition to non-mining economic activity has further to go, and there will be some fiscal contraction from the Budget,” Mr Caelli said.

“We don’t see rates increasing until at least the first quarter of 2015,” he said.

All 16 economists and money experts in a recent survey by comparison website Finder.com.au expected rates to remain unchanged.

More than half of the economists and experts in the survey (nine of the 16 from AMP, ANZ, Bank of Sydney, ING DIRECT, RAMS, UBS, Heritage Bank, Moody’s Analytics and ME Bank) are forecasting the cash rate will rise next year.

Five respondents from Commonwealth Bank, Commsec, Urbis, HSBC and St George Bank expect to see a cash rate rise by the end of the year.

Ten of the 16 experts suggested the public’s reaction to federal Budget cuts will delay the change in cash rate, with nine stating the economy still has to grow in stability before any significant cash rate changes occur.

RBA rate announcement
mortgagebusiness

Latest News

The number of dwellings approved plunged in January but still remained well above last year’s level, according to ABS data. ...

Australians aged 22 and under (Gen Z) are the age group that is most interested in owning a home in future, even though two-fifths believe...

Teachers Mutual Bank Ltd has welcomed new directors to its board and bid farewell to John Kouimanos, who has retired from the board after...

FROM THE WEB

Join a group of highly informed brokers.

Broker Pulse, a community-driven knowledge base of lender performance Reveal exactly which lenders are making life easiest for brokers and their clients by taking this monthly survey and joining a group of highly informed brokers who leverage these insights every month.

JOIN NOW
podcast

LATEST PODCAST: Aggregation group changes

Do you expect to see strong uptake of the HomeBuilder scheme?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.