RBA MAKES FINAL CASH RATE CALL FOR THE YEAR The Reserve Bank has once again left the cash rate untouched. At its last board meeting for the year today, the RBA chose to leave the official cash rate at 2.5%, marking the 16th consecutive monthly meeting in which the Bank has chosen to remain on the sidelines. Economists have widely tipped the RBA to leave the cash rate unchanged. CoreLogic RP Data research analyst Cameron Kusher said the decision comes as the non-mining sector continues its recovery and commodity prices fall. With home value growth continuing to moderate in November and dwelling and work approvals recently slipping, there may be some concern that the housing market alone is not providing enough economic stimulus as the mining and resources investment activity subsides and commodity prices fall. According to the most recent Reserve Bank survey conducted by finder.au, 92% of economists and industry experts (34 out of 37) surveyed predict that the next cash rate move will be an increase. Interestingly, 8% (3 out of 37) are forecasting the next cash rate move to be a decrease – a shift from last month when only one respondent predicted another cash rate cut.
Posted on: Tue, 02 Dec 2014 03:39:58 +0000
Trending Topics
Recently Viewed Topics
© 2015