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As widely predicted, the RBA announced at 2.30pm today it will be keeping the cash rate on hold at 2.5 per cent.
"All 20 leading economists and experts in our monthly Reserve Bank survey were spot on again, after predicting no change to the cash rate today,” Finder.com.au money expert Michelle Hutchinson said.
“However, they are expecting the Reserve Bank to lift the cash rate next year, and it's likely to move up to a "new normal" level of about four per cent,” Ms Hutchinson said.
"Despite this, lenders are fighting harder than ever to win over new customers, particularly for lending products like home loans and credit cards, which is great news for borrowers,” she said.
The central bank has consistently said it has no plans to change rates until the end of the year.
In its April 15 monetary minutes, the RBA implied that the cash rate was expected to remain unchanged over the remainder of the year.
“At recent meetings, the board had judged that it was prudent to leave the cash rate unchanged and members noted that the cash rate could remain at its current level for some time if the economy was to evolve broadly as expected,” the minutes said.
“Developments over the past month have not changed that assessment,” the April 15 minutes continued.
“There have been further signs that low interest rates were supporting domestic activity.”
The April 15 minutes noted that the board would continue to monitor developments in the economy, with members noting that, on present indications, the most prudent course was likely to be a period of stability in interest rates.