Powered by MOMENTUM MEDIA
subscribe to our newsletter

Reserve Bank decides on cash rate

The Reserve Bank of Australia has delivered the decision of its monthly board meeting.

Board members decided to leave the official cash rate at the record-low 1.75 per cent following a 25 basis point cut in May.

Thirty of the 31 economists and commentators surveyed by comparison website finder.com.au predicted no change to the cash rate today.

The majority of respondents cited the federal election, Brexit and the upcoming CPI figures as contributing factors to the RBA’s wait-and-see approach.

AMP Capital chief economist Shane Oliver said the Reserve Bank expressed comfort with current monetary settings after the June meeting and “it’s likely in wait-and-see mode regarding the risks posed by Brexit”.

Advertisement
Advertisement

PROMOTED CONTENT


Greater Bank CEO Scott Morgan said there is nothing in recent data to suggest further rate cuts are needed.

“There is no need for a knee jerk response to Brexit or other issues,” Mr Morgan said.

“I think the RBA will want the election to be out of the way and [want] some time to look at how the economy and markets are responding to the previous cut.”

Moody’s Analytics’ Emily Dabbs said monthly indicators show the economy is continuing to perform well.

“The impact of Brexit on Australian markets is relatively minor. The central bank will wait until the CPI data release to assess inflation pressures,” Ms Dabbs said.

Meanwhile, 24 per cent of the experts surveyed said the cash rate would fall to 1.25 per cent before an upturn.

Reserve Bank decides on cash rate
mortgagebusiness

Latest News

The ASIC commissioner has revealed that he was unaware of the government’s proposal to scrap responsible lending laws until it made the a...

The neo-lender has announced that its warehouse loan funding facility has been upsized on the back of growth of its loan originations. ...

Illion’s bank statements and data provider and its credit reporting company have been made accredited data recipients under the Consumer D...

FROM THE WEB

Join a group of highly informed brokers.

Broker Pulse, a community-driven knowledge base of lender performance Reveal exactly which lenders are making life easiest for brokers and their clients by taking this monthly survey and joining a group of highly informed brokers who leverage these insights every month.

JOIN NOW
podcast

LATEST PODCAST: Court cases and penalties

Do you expect to see strong uptake of the HomeBuilder scheme?

Website Notifications

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