The Reserve Bank is expected to keep the cash rate on hold at 2.00 per cent at today’s monthly board meeting.
All 31 of finder.com.au’s panel of experts have predicted there will be no change to the RBA cash rate in August, with 55 per cent predicting interest rates will begin to rise in 2016.
The tightening of investor lending has taken pressure off the RBA to make further cuts, according to LJ Hooker chief executive Grant Harrod.
“Some heat is expected to come out of the Sydney property market over the next few months as banks begin to tighten lending to investors. This will come as a relief to the Reserve Bank,” he said.
“This, combined with a softer Australian dollar, gives the Reserve Bank time to take stock of market movements and wait until further data provides a clearer indication of how the economy is tracking.”
ING Direct treasurer Michael Witts said that with the exchange rate starting to move lower, "this will lessen the pressure for further Reserve Bank cuts for the moment as broader sectors of the economy benefit from the lower exchange rate".
Onthehouse finance editor Peter Boehm said he would be "very surprised" to see movement in either direction from the RBA in August.
“It’s too early to start increasing rates and I cannot see the economic or financial justification for further rate cuts at this point. I think (hope) we'll see some interest rate stability over the coming months,” he said.