Website Notifications

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

Brokers expect RBA to hold

rba  x rba  x
Francesca Krakue 4 minute read

The cash rate is tipped to remain on hold at 1.5 per cent when the RBA meets today for the first time this year, due to weaker-than-expected inflation results.

Of the 300 brokers surveyed by online mortgage platform HashChing ahead of the RBA’s meeting today, 85.94 per cent believe that the RBA will keep the rate on hold today.

Meanwhile, 65.45 per cent believe that rates will rise in 2017.

A RateCity.com.au analysis of over 30 key economic indicators — both domestic and international — also suggests that the RBA will stay its hand.


Peter Arnold, data insights director at RateCity.com.au, explained that while lower than expected, consumer price data (both headline and underlying inflation) was mostly in-line with the RBA’s forecasts.

He elaborated: “The RBA will be inclined to keep official rates steady after the latest figures saw consumer prices rise by 1.5 per cent for the year to December and 0.5 per cent for the quarter.”

Further, Mr Arnold highlighted that the country’s unemployment recently increased slightly to an 11-month high of 5.8 per cent, due to a lift in the number of people looking for work (rather than job losses).

“Meanwhile, the so-called ‘Trump Trade’ is gaining momentum, with hopes of deregulation and a booming US economy adding to the likelihood of interest rate hikes by the US Federal Reserve leading to rises in the US dollar, which is expected to cause further volatility for our currency,” he added.

Of the brokers surveyed by HashChing, 72.73 per cent said they haven’t seen any impact on the home loan market by global factors, including the current political upheaval in the US.


RateCity.com.au’s Mr Arnold conceded that none of these factors are likely to influence the RBA’s decision today on rates. Instead, the focus is on the RBA’s Statement on Monetary Policy, which will be released on Friday and will include updates on forecasts for growth and inflation.

[Related: Flavell warns of further rate hikes in 2017]

Brokers expect RBA to hold
rba  x
TheAdviser logo

Are you a new-to-industry broker in the process of growing your business? Then there’s some great news: The Adviser’s New Broker Academy is back in 2021 and will provide you with essential insights into cutting-edge tools, strategies and processes to fast-track to success. Don’t miss your chance to attend. To secure your FREE place, visit newbroker.com.au now!

rba  x


more from the adviser
Greater Bank Newcastle Perm merger

Breaking News

Bank CEO pledges to maintain broker offering following merger

The CEO of Newcastle Permanent has said the lender will continue ...

Money jar

Breaking News

bcu launches $5k cashback offer

The customer-owned bank has released a cashback offer for new and...


Breaking News

RBA makes cash rate call as lockdown drags on

The central bank has delivered its rate decision for August as th...