No Surprise With RBA March Cash Rate Call
Today’s cash rate call has come as no surprise with the Reserve Bank of Australia (RBA) leaving it unchanged at 1.50 per cent for March.
The decision was widely predicted by economists across Australia, inclusing RBA governor, Phillip Lowe, who made it clear that future rate cuts were now more unlikely than likely.
The Housing Industry Association (HIA) stated that it believes rates aren’t going anywhere in a hurry.
HIA Senior Economist, Shane Garrett says, “Our expectaion is that the RBA will probably hold first on interest rates over the remainder of the year, particularly with the pace of general price inflation so weak. This outlook is only likely to change should we see gyrations in the Australian dollar’s exchange rate large enough to warrant intervention by the RBA.”
While interest rates remain on hold, many Australian lenders have recently tweaked their pricing and policy. This has put additional restrictions on investment lending, specifically on the refinancing in this space.
Source: Media Release, Reserve Bank of Australia, “Statement by Phillip Lowe, Governor: Monetary Policy Decision”