The Reserve Bank of Australia decided to once again reduce the official cash rate, this time to 1% in a concentrated effort to boost household spending and the economy in general.
In the lead up to the federal election the RBA has again decided to leave the official cash rate unchanged at 1.5%.
Only twice before has the RBA elected to drop rates during an election campaign and on both those occasions the incumbent governing party lost the election.
As financial markets digest the findings of the Banking Royal Commission, the Reserve Bank of Australia has made its first rate announcement for 2019.
The RBA has decided to leave the official cash rate unchanged at 1.5% for the 27th consecutive time. Here are our thoughts on why they have made this decision.
The Reserve Bank of Australia has decided to leave the official cash rate unchanged at 1.5% for the 26th consecutive time. It’s now almost eight years since the last increase.
In making this decision the RBA looks to have balanced low unemployment, strong trade figures and increasing business and public sector infrastructure investment against continued low inflation, falling house prices and slow wages growth.
The Reserve Bank of Australia made the decision today to leave the cash rate unchanged at 1.5%.
In making this decision the RBA looks to have taken into account the lack of economic growth in Australia, evidenced by the continuing fall in house prices, a rise in mortgage arrears and a drop in the number of dwelling approvals in July.