Powered by MOMENTUM MEDIA
realestatebusiness logo

Subscribe to our newsletter

RBA rate announcement

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

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

“Inflation is within the target zone, so the RBA can afford to wait and see the recovery unfold,” ME Bank general manager markets John Caelli said.

“Economic growth continues to be below average, the transition to non-mining economic activity has further to go, and there will be some fiscal contraction from the Budget,” Mr Caelli said.

“We don’t see rates increasing until at least the first quarter of 2015,” he said.

Advertisement
Advertisement

All 16 economists and money experts in a recent survey by comparison website Finder.com.au expected rates to remain unchanged.

More than half of the economists and experts in the survey (nine of the 16 from AMP, ANZ, Bank of Sydney, ING DIRECT, RAMS, UBS, Heritage Bank, Moody’s Analytics and ME Bank) are forecasting the cash rate will rise next year.

Five respondents from Commonwealth Bank, Commsec, Urbis, HSBC and St George Bank expect to see a cash rate rise by the end of the year.

Ten of the 16 experts suggested the public’s reaction to federal Budget cuts will delay the change in cash rate, with nine stating the economy still has to grow in stability before any significant cash rate changes occur.

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

“Inflation is within the target zone, so the RBA can afford to wait and see the recovery unfold,” ME Bank general manager markets John Caelli said.

“Economic growth continues to be below average, the transition to non-mining economic activity has further to go, and there will be some fiscal contraction from the Budget,” Mr Caelli said.

“We don’t see rates increasing until at least the first quarter of 2015,” he said.

All 16 economists and money experts in a recent survey by comparison website Finder.com.au expected rates to remain unchanged.

More than half of the economists and experts in the survey (nine of the 16 from AMP, ANZ, Bank of Sydney, ING DIRECT, RAMS, UBS, Heritage Bank, Moody’s Analytics and ME Bank) are forecasting the cash rate will rise next year.

Five respondents from Commonwealth Bank, Commsec, Urbis, HSBC and St George Bank expect to see a cash rate rise by the end of the year.

Ten of the 16 experts suggested the public’s reaction to federal Budget cuts will delay the change in cash rate, with nine stating the economy still has to grow in stability before any significant cash rate changes occur.

RBA rate announcement
mortgagebusiness

Latest News

Over four in 10 home owners are using the equity in their home to get ahead on their mortgage, a NAB survey has found. ...

Less than five months after its business and agribusiness divisions were joined, the banking group has appointed the conglomerate’s first...

The mutual bank has expanded its partnership with NextGen in a bid to establish a complete end-to-end origination and assessment process. ...

VIEW ALL

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

Do you think the new NSW property tax will help or hinder first home buyers?

Website Notifications

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