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.
Today the RBA has once again left interest rates on hold.
Following its February meeting, the RBA said the case for the next rate move to be a decrease was now almost equal to the case for an increase and that it would continue to watch the economy closely for signs around its key objectives of decreasing unemployment and increasing inflation.
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 made their announcement today to leave the official cash rate unchanged at 1.5%. It has now been two years since the last cash rate move. We think this is due to a combination of factors including very low wages growth, high underemployment, flattening property prices and home lending and modest inflation. Many experts are predicting it may be some time before we see the next rate movement and it may actually be downwards.
The Reserve Bank of Australia decided to once again leave the official cash rate unchanged at 1.5%, with the last rate move back in August 2016. Here are our thoughts on why the Reserve Bank of Australia has made this decision.