Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Website Notifications

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

RBA makes cash rate call

rba  x rba  x
Francesca Krakue 4 minute read

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

As many experts predicted, board members have opted to hold the official cash rate at its record low of 1.50 per cent.

In a unanimous result, all 38 economists and experts in the finder.com.au Reserve Bank survey tipped this outcome.

Many of the experts cited soft inflation and a stubborn Australian dollar as the reason the RBA chose to hold the rate, explaining that the bank remains in ‘wait and see’ mode.

Advertisement
Advertisement

Australian Associated Press chief economist Garry Shilson-Josling explained: “The RBA prefers to link its cash rate moves to quarterly CPI releases and the next is not until late October.”

Many of the experts also believe that if the RBA is to make another cut this year, it will most likely be in later months.

Raine & Horne executive chairman Angus Raine commented: “This time of year, it will probably drop before Christmas.”

CoreLogic head of research, Tim Lawless echoed this sentiment, adding that a November cut is likely particularly if inflation numbers remain low.

“If inflation was, say, 1.0 per cent year-on-year, that’s a pretty good reason for another rate cut,” he told The Adviser.

PROMOTED CONTENT


Mr Lawless also highlighted that the RBA’s rate cuts so far this year are not reducing the Australian dollar as hoped.

“To reduce the Aussie dollar, we’re going to need to start seeing the US rates starting to rise. There’s a lot more talk about that now which may take some pressure off the RBA to cut rates,” Mr Lawless commented.

“It’s a very fine line they’re walking at the moment: trying to stimulate the economy without overstimulating the housing market,” he added.

“We’re already seeing interest rates creating a demand, so there is some risk that lower rates will continue to add some further fuel to the fire in Sydney and Melbourne, though I think other markets like Perth, Darwin and Brisbane could probably benefit from lower interest rates,” he said.

RBA makes cash rate call
rba  x
TheAdviser logo

If you’re feeling overworked and overwhelmed in this fast-paced mortgage market, it’s time to make some changes, and the Business Accelerator Program can help! Work smarter, not harder, in 2022 and beyond, visit the website here to secure your ticket.

rba  x

 

more from the adviser
Stephen Moore headshot

Breaking News

Brokers will dictate future of Choice, FAST, PLAN: White

After its management restructure, Loan Market Group will continue...

Peter Lock Kerry Betros Heritage

Breaking News

Heritage leaders address merger proposal concerns

The chairman and chief executive of Heritage Bank have addressed ...

uptick graph

Breaking News

Wisr reports 113% loan book growth

The non-bank lender originated a record $132 million over the las...