The Reserve Bank of Australia has handed down a rate day decision for the last time in 2020, capping off a tumultuous year for the central bank.
The already record-low rate of 0.10 of a percentage point will remain unchanged as Australia heads into the festive period.
Prior to the announcement, Real Estate Institute of NSW CEO Tim McKibbin said the rate decision seemed “a foregone conclusion”.
“Pending any further economic shocks, the 0.10 [of a percentage point] cash rate should be with us for many months ahead,” he said.
“More interesting will be the minutes of the meeting, as these will help to set the fiscal policy scene for 2021, a year set to be analysed in economics classes for decades to come.”
Harley Dale, the chief economist at CreditorWatch, has also considered today’s decision as “universally expected”.
“The RBA fired its last interest rate bullet in November, taking the official cash rate to a barely positive rate of 0.1 [of a percentage point].”
According to the chief economist, a widely anticipated strong result for gross domestic product for the September 2020 quarter was also part of a more positive tone to the RBA’s interest rate statement.
Acknowledging that the RBA will not be meeting in January, Mr Dale said it will still “no doubt keenly watch the performance of the retail sector over Christmas and the holiday season”.