Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
subscribe to our newsletter

RBA rate announcement

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

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

"All 20 leading economists and experts in our monthly Reserve Bank survey were spot on again, after predicting no change to the cash rate today,” Finder.com.au money expert Michelle Hutchinson said.

Advertisement
Advertisement

“However, they are expecting the Reserve Bank to lift the cash rate next year, and it's likely to move up to a "new normal" level of about four per cent,” Ms Hutchinson said.

"Despite this, lenders are fighting harder than ever to win over new customers, particularly for lending products like home loans and credit cards, which is great news for borrowers,” she said.

The central bank has consistently said it has no plans to change rates until the end of the year.

In its April 15 monetary minutes, the RBA implied that the cash rate was expected to remain unchanged over the remainder of the year.

“At recent meetings, the board had judged that it was prudent to leave the cash rate unchanged and members noted that the cash rate could remain at its current level for some time if the economy was to evolve broadly as expected,” the minutes said.

“Developments over the past month have not changed that assessment,” the April 15 minutes continued.

“There have been further signs that low interest rates were supporting domestic activity.”

The April 15 minutes noted that the board would continue to monitor developments in the economy, with members noting that, on present indications, the most prudent course was likely to be a period of stability in interest rates.

 

RBA rate announcement
mortgagebusiness

Latest News

OPINION: The House of Representatives’ standing committee on economics has suggested that banks should automatically adjust borrower repay...

The central bank has noted lower mortgage arrears rates for more recent loans, attributing it to the effectiveness of tighter lending standa...

While the housing market has curbed its downward trajectory, meaningful growth is not yet expected, according to HIA’s chief economist. ...

FROM THE WEB
podcast

LATEST PODCAST: Vertical integration and the rise of neobanks

Do you think the mortgage market will see more consolidation this year?

Website Notifications

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