Cash Rate Remains at 2.00% for a Year
The Board of the Reserve Bank of Australia (RBA) announced yesterday that the official cash rate will remain at 2.00%, “as widely expected”, said the Housing Industry Association.
“Few will be surprised by today’s decision by the RBA to leave the official cash rate unchanged,” said HIA economist, Diwa Hopkins.
The RBA has stated that “the Board judged that there were reasonable prospects for continued growth in the economy, with inflation close to target. The Board therefore decided that the current setting of monetary policy remained appropriate”.
Yesterdays HIA media release on the “Cash rate at 2.00 per cent for a twelfth month” stipulated that,
“The Residential construction activity – both new home building and renovations investment – made substantial contributions to the 3 per cent overall annual growth in GDP at the end of 2015.”
“Inflationary pressures remain fairly subdued, with the renewed strength of the Australian dollar likely to ensure that this remains the case.
Source: HIA (Housing Industry Australia, Media Release, 5 April 2016).