Powered by MOMENTUM MEDIA
subscribe to our newsletter
No change expected for RBA rate decision

No change expected for RBA rate decision

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.

Advertisement
Advertisement

“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.

No change expected for RBA rate decision
mortgagebusiness

 

Latest News

There’s a “very real chance” that the Reserve Bank will lower the cash rate three months in a row, according to ANZ Research. ...

Technology company Lakeba Group has appointed financial services specialist Roy McKelvie as a non-executive director, as the company prepare...

The corporate regulator has released a report outlining its decisions on relief applications from firms operating under the Corporations Act...

FROM THE WEB
podcast

LATEST PODCAST: Broker share and Westpac U-turn

Do you think the banking royal commission recommendations could negatively impact competition in the mortgage market?

Website Notifications

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