ibusinesslines.com October 21, 2018

RBA ends the year with a 'hold' on the cash rate

05 December 2017, 03:39 | Myron Mathis

RBA ends the year with a 'hold' on the cash rate

RBA ends the year with a 'hold' on the cash rate

Surprising no one, the RBA has once again made a decision to hold the cash rate at 1.5 per cent, a move that many have predicted.

Once again the RBA's result was correctly predicted by 100% of the experts polled in the monthly finder Reserve Bank Survey.

The Reserve Bank doesn't meet in January, so the bank will make its next cash rate decision on 6 February 2018.

Mortgage Choice's John Flavell said the decision to keep the rate on hold was indicative of a thriving economy.

CoreLogic head of research Tim Lawless said the slowing house market continued to ease concerns about the need to cut the cash rate, while inflation remains below the RBA's target range, resisting calls for an increase in the cash rate.

"Property price growth has stagnated across Australia, which is line with expectations". In addition, inflation is now sitting at 1.8% - slightly below the Reserve Bank's target band range of 2-3%.

Economists widely expect the Reserve Bank to leave the cash rate at a record-low 1.5 per cent, where it has stood since August 2016.

"The low level of interest rates is continuing to support the Australian economy", said Lowe. This effect is similar to a rate rise in some respects.

If rates were to rise - however imperceptibly - millions of Australian households paying off a mortgage would experience the pinch.

"Households are already clamping down on spending which is evident in the weak retail spending figures occurring against a backdrop of record low wages growth".

AMP chief economist Shane Oliver said strong business conditions and a high Australian dollar meant rates argued against a rate hike.

ABC Bullion chief economist Jordan Eliseo said he was confident there would be a rate cut on the horizon but believed the rate would hold going into the festive season.

"The RBA will be happy to sit tight as we approach Christmas and monitor incoming data".

The central bank is anxious about Australians' spending habits, as pay packets remain stubbornly stagnant and household debt high.

Other News

Trending Now

Netflix confirms Season 6 will carry on without Kevin Spacey
The production on the sixth and final season of Netflix's House of Cards will begin next year without its lead Kevin Spacey . However, while previous seasons of House of Cards had 13 episodes, the sixth season and final season will have only eight.

Analyst's Viewpoint About Global Payments Inc. (GPN), Exxon Mobil Corporation (XOM)
Following the completion of the transaction, the vice president now owns 187,663 shares in the company, valued at $15,750,555.59. Lafleur Godfrey Limited Liability Company holds 0.17% of its portfolio in Exxon Mobil Corporation (NYSE: XOM ) for 8,083 shares.

Pope recalls suffering faces from Myanmar, Bangladesh trip
Burma is at a "turning point" where it will be hard to move forward, he said, but it also would be hard to back away from change. Francis said they deserved to hear something from him directly, and so he asked for a microphone and spoke from the heart.

Missing child alert issued for 4-year-old Port St. Lucie girl
Lucie County Sheriff's Office, the Martin County Sheriff's Office and other agencies assisted Port St. A local resident donated the use of his drone to help in searching areas for the child, police said.

Purchases 471 Shares of Cisco Systems, Inc. (CSCO)
Also, CEO Charles Robbins sold 121,390 shares of the company's stock in a transaction that occurred on Wednesday, September 13th. Institutional & Family Asset Management LLC grew its position in Cisco Systems by 2.7% in the third quarter. (NASDAQ: CSCO ).

Google to hire thousands of YouTube moderators as criticism over content mounts
YouTube has been criticised in recent weeks about allowing offensive and disturbing content to be uploaded to its platform. Google-owned video-sharing site YouTube will hire 10,000 people to keep a check on the negative content on the platform.

New driving test as examiners prepare to strike
Examiners voted 84 per cent in favour of the strike, and downed keys on 4 December - the day the new rules come in. During this part of the test, you have to drive without turn-by-turn directions from the driving examiner.