Despite much anticipation the RBA has decided they will keep rates on hold for another month, announced less than a fortnight out from the federal election.
A record low cash rate of 1.5% has now been held since August 2016, although money market traders do not expect it to remain there much longer. It has been anticipated that the official cash rate would be cut due to consistently disappointing wages growth, household consumption and gross domestic product.
RBA Governor Philip Lowe said they would be “paying close attention” to the labour market at its upcoming meetings, hinting that sustained rising in unemployment could lead to a rate cut. “The inflation data for the March quarter were noticeably lower than expected and suggest subdued inflationary pressures across much of the economy,” he said.
“The main domestic uncertainty continues to be the outlook for household consumption, which is being affected by a protracted period of low income growth and declining housing prices,” Dr Lowe said.
Interest rates have been on hold since a month after the last election in 2016, the longest period of interest rate stability in Australian history.
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The Reserve Bank of Australia delivered its verdict on interest rates for May 2019, ahead of the upcoming federal election on 18 May.
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By Wendy Chamberlain
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With a passion for all things real estate spanning over 20 years, Wendy loves that her role as a Buyers Agent and Sellers Advocate gives her buying and selling clients an experienced voice they can trust when it comes to negotiating to buy or sell something as important as their home or investment. Wendy considers it a privilege to be asked to help others realise such an important goal as home ownership and to be trusted with that honour. Get in touch today via www.chamberlainadvocates.com.au for a no obligation chat about how Wendy can work with you and help you save time and money to secure your new home sooner.
