ECONOMY

RBA Announcement: Cash rate remains unchanged at 1.5 per cent

October 4 2016
RBA October

The RBA has announced it’s decision to keep the cash rate on hold at 1.50 per cent for October 2016.

The Official Cash Rate will remain at 1.50 per cent for at least another month following today’s meeting of the RBA Board, according to the Housing Industry Association (HIA).

“Financial markets had been pricing in a ‘no change’ decision from the RBA for weeks and that is exactly what we have got,” remarked HIA Senior Economist, Shane Garrett.

“The two reductions in interest rates since the beginning of this year following on from previous cuts have done much to steer sections of the Australian economy back in the right direction, particularly residential building,” Shane Garrett pointed out.

“The RBA views inflation as being well under control. This makes it much easier for the RBA to cut rates again should the economy need an extra push,” added Shane Garrett.

“Any further strengthening of the Australian dollar will enhance the chances of another rate cut. This could come as early as next month, should there be an unfavourable reaction by markets to the election result in the US.”

“Any additional interest rates cuts are likely to prolong the buoyant conditions in new home building,” concluded Shane Garrett.

Source: HIA Media Release: “RBA holds fire on interest rates”

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