The RBA has left the official cash rate on hold at 1.5% (no change since August 2016)

In a move that was widely predicted, the RBA decided to maintain the current official cash rate at its record low of 1.50 per cent. The cash rate last moved in August 2016, ticking down.

As lenders continue with their out of cycle rate increases and with the growing probability that the government’s bank levy will be passed onto customers, the Reserve Bank of Australia today decided to leave the official cash rate unchanged.

In continuing to adopt a wait and see approach the RBA took into account the latest set of mixed economic data. Unemployment has fallen from 5.9% to 5.7% and retail spending was up 1% in April but there are signs that the housing markets in Sydney and Melbourne are slowing and economic growth data due out tomorrow is expected to be lower.

Most experts believe the rates will not move until 2018, with a few predicting late 2017.

For a copy of the RBA’s announcement please see:

http://www.rba.gov.au/media-releases/2017/mr-17-12.html