As widely predicted, the RBA announced at 2.30pm today that it will be keeping the cash rate on hold at 2.5 per cent.
Australia's biggest Reserve Bank survey showed there was no change expected to the cash rate today, but borrowers can expect rates to rise next year followed by a downward cycle as soon as 2017.
All 33 leading experts and economists in the finder.com.au Reserve Bank Survey – including from the major four banks – betted the RBA would keep the cash rate at 2.50 per cent on Melbourne Cup day.
For the past 20 years, the Reserve Bank has moved the cash rate nine times on Melbourne Cup day, six of which were in the past decade.
The vast majority of experts (91 per cent) are expecting the cash rate to start rising next year, with two experts forecasting rates to rise in 2016.
Out of the 32 who expect the cash rate to rise, they predicted it would likely be in August 2015 – the average of these predictions.
Michelle Hutchison, money expert at finder.com.au, said interest rates won't rise for long before dropping again.
"Our economy is under pressure to perform better, and all 33 experts in the survey believe that the cash rate won’t rise for very long before it will start to fall again,” Ms Hutchinson said.
“The survey found that the cash rate is likely to peak at four per cent in 2017 according to the average forecast,” she said.