RBA leaves rates on hold

By webmaster

The Reserve Bank of Australia (RBA) has decided to keep the official cash rate on hold at 4.5 per cent for the fourth consecutive month.

Rates have been on hold since May. Prior to that, concerns about rising inflation forced the RBA to lift rates by 25 basis points in March, April and May.

Uncertainty surrounding the global economic outlook, consumer spending and Australia's political situation promoted the board to leave rates unchanged.

While local economic data shows the Australian economy has grown at the fastest pace in three years, ongoing economic uncertainty abroad ultimately forced the RBA to err on the side of caution when making the latest rate decision.

"The current setting of monetary policy is resulting in interest rates to borrowers around their average levels of the past decade. With growth in the near term likely to be close to trend, inflation close to target and with the global outlook remaining somewhat uncertain, the board judged this setting of monetary policy to be appropriate for the time being," RBA governor Glenn Stevens said in his statement on monetary policy.

The news did not come as a surprise, with many economists predicting the RBA would leave rates unchanged when it met in Adelaide today.

AMP chief economist and regular Smart Property Investment columnist Shane Oliver said the stronger than expected data culminating in above trend growth in the June quarter was balanced against uncertainty regarding the global outlook and expectations that inflation is likely to remain within the target range over the year ahead.

Thank you.

Your enquiry has been sent to a local Aussie Mortgage Broker.

We will be in contact with you shortly.

error occurred.
Unfortunately Aussie cannot attend to your home loan related enquiry at this stage as you must be a citizen or permanent resident.
Do you need help finding the right loan for your investment?
What Aussie do for you:
  • Give expert mortgage advice to help you find great investment loan deals
  • Help you maximise return by lowering financing costs
  • Save you time and effort by helping with the paperwork
First name
Last name
Mobile Number
Are you an Australian Resident?
promoted stories

Top Suburbs

Highest annual price growth - click a suburb below to view full profile data:
BLUE BAY 49.18%
RBA leaves rates on hold
SPI logo