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Australia’s leading economists unanimously agree that the Reserve Bank of Australia will leave the official cash rate on hold at today’s monthly board meeting.
According to a survey conducted by comparison website finder.com.au, all 33 experts and economists surveyed expect the cash rate to remain at the record-low two per cent, citing an improving economy as the likely reason.
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“Earlier rate cuts and the low Aussie dollar is filtering into a pick-up in economic activity,” Market Economics managing director Stephen Koukoulas said.
“Further rate cuts are simply not needed.”
However, there is some consensus that Australians may be seeing another rate cut in the not so distant future with 15 per cent of experts predicting a decrease in February.
“Having not moved in November, the Reserve Bank will sit and wait for global and domestic developments,” QIC chief economist Matthew Peter said.
“A February rate cut is still an option if global conditions deteriorate.”
Meanwhile, the majority of experts believe property prices will rise in 2016, while 29 per cent expect property prices to drop.
Thirty-eight per cent of experts predict a decrease in demand for residential property next year, while 34 per cent predict an increase in demand for residential property.
Furthermore, 45 per cent expect rents to rise in 2016, while 42 per cent believe rents will remain the same and 14 per cent say rents will fall.
[Related: Year in review: Cracking a complex market]
