It’s a ‘near certainty’ that the RBA will keep the cash rate on hold at 2.00 per cent at this afternoon’s board meeting.
All 33 of finder.com.au’s panel of experts and commentators have predicted that the central bank will leave the cash rate unchanged today, with 56 per cent forecasting interest rates will begin to rise in 2016.
AMP Capital chief economist Shane Oliver said not enough had happened since the RBA’s June meeting to justify a rate movement. He believes the board will review its forecasts in August before easing again.
LJ Hooker chief executive Grant Harrod said the RBA will monitor the property market closely before adjusting the cash rate further.
“The Reserve Bank is still weighing up the impact of this year’s two rate cuts,” Mr Harrod said. “The Sydney and Melbourne housing markets continue to outperform, as evidenced by strong auction clearance rates. This, combined with data and the global economic environment, will guide the Reserve Bank over the remainder of the year.”
It would appear punters agree with the experts on the RBA being highly unlikely to move rates this afternoon.
Online bookmaker CrownBet said the odds for ‘no change’ are just $1.03 – meaning bettors would receive 3¢ for every dollar wagered on this selection.
“In betting terms, it’s as close to a certainty as you’re likely to see for some time,” CrownBet’s Haydn Lane said.
“Punters believe the announcement is a foregone conclusion.”
A decrease of one to 25 basis points is paying $8.00, while an increase of 1 to 25 basis points is paying $16.00.