Cash rate remains at 26 year low – unchanged at 1.75%
Australia’s cash rate remains unchanged at 26 year low of 1.75%, after today’s RBA meeting.
As anticipated by Australia’s leading economists, the Reserve Bank of Australia have announced the cash rate will remain at May’s all time low of 1.75% for the second consecutive month.
HIA Chief Economist, Dr Harley Dale states the decision was, “Thanks in no small part to the strong contribution a national housing construction boom provided to the broader Australian economy in early 2016, a second reduction in official rates was never on the cards in June.”
Dr Harley Dale goes on to say, “We live in a very fluid economic environment so it is appropriate that the RBA is willing to cut rates further this year, should it deem that necessary. It is quite clear that the Bank is leaving the door wide open.”
This decision comes ahead of the July 2nd Federal election.
Lowest cash rates in 26 years
At 1.75% the Australian cash rate now sits at only 10% of the of the 1990 high of 17.5%, and 0.75 lower than the same time last year. There is no view of a rise on the horizon with HIA Chief Economist, Dr Harley Dale stating, “[sic] the RBA is willing to cut rates further this year, should it deem that necessary. It is quite clear that the Bank is leaving the door wide open.”
Interest rate results over the last 26 years
source: tradingeconomics.com – RBA Cash rate 1990 to May 2016.