The Reserve Bank of Australia has today announced the outcome of its sixth 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.
A survey by comparison website Finder.com.au of 18 leading experts and economists – including all four major banks – found that all respondents predicted that rates would remain unchanged.
Six respondents expect the cash rate will rise next year, with experts from Heritage Bank, RAMS, AAP and Westpac betting on a rise from the second-half to late 2015.
Treasurer of ING Direct Michael Witts was the only expert to report equally compelling scenarios for the cash rate to increase or decrease at the next rate move.
Finder.com.au money expert Michelle Hutchison said the survey results show that borrowers need to start planning ahead for rate hikes before it’s too late.
“It looks like we have well and truly hit the bottom of the cash rate cycle and interest rates are set to climb within the next 12 months, with only one of the 18 experts in our survey (ING Direct) unsure of which direction the next rate move will be,” Ms Hutchison said.
“According to the Australian Bureau of Statistics, over 70 percent of households have some form of debt such as a home loan, credit card, personal or business loans or unpaid bills,” she said.
“So regardless of whether the next cash rate rise will be this year or next, it’s likely that most households across Australia will be hit hard and need to start planning ahead before it’s too late.”