RBA leaves rates on hold

RBA leaves rates on hold

01 March 2011 by Staff Reporter 0 comments

Jessica Darnbrough

The Reserve Bank has decided to leave the official cash rate on hold at 4.75 per cent.

A raft of less than stellar economic data forced the RBA to leave the cash rate unchanged at its third consecutive board meeting earlier today.

Yesterday, HSBC economist Paul Bloxham said it was unlikely that the RBA would lift rates any time soon as the risks to inflation are almost all to the upside.

“HSBC believes rates will remain on hold next month as well. We still expect the next move around mid-year – with May or June pencilled in as most likely – though we are watching the labour market carefully to pin down the timing,” Mr Bloxham said.

“We expect the unemployment rate to drift into the 4’s in coming months, and view this as a necessary condition for a mid-year rate move. We still expect a total of 50 basis point of tightening this year and another 50 basis point in the first half of next year, with the cash rate to peak at 5.75 per cent in mid-2012.”

 

Jessica Darnbrough

The Reserve Bank has decided to leave the official cash rate on hold at 4.75 per cent.

A raft of less than stellar economic data forced the RBA to leave the cash rate unchanged at its third consecutive board meeting earlier today.

Yesterday, HSBC economist Paul Bloxham said it was unlikely that the RBA would lift rates any time soon as the risks to inflation are almost all to the upside.

“HSBC believes rates will remain on hold next month as well. We still expect the next move around mid-year – with May or June pencilled in as most likely – though we are watching the labour market carefully to pin down the timing,” Mr Bloxham said.

“We expect the unemployment rate to drift into the 4’s in coming months, and view this as a necessary condition for a mid-year rate move. We still expect a total of 50 basis point of tightening this year and another 50 basis point in the first half of next year, with the cash rate to peak at 5.75 per cent in mid-2012.”

 

promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2016

With a combined sales volume of $13 billion in 2016, the Top 100 Agents ranking represents the very best sales agents in Australia. Find out what sets them apart and learn their secrets to success.

featured podcast

featured podcast
REVEALED: The 10 best agents in Australia for 2017

For the first time ever, the top 10 agents in the REB Top 100 Agents ranking are revealed in this exclusive podcast. ...

View all podcasts

Are dodgy agents being punished enough?

Yes (8.6%)
No (55%)
Only in some states (2.3%)
Not all dodgy agents are being found out (34.1%)

Total votes: 220
The voting for this poll has ended on: April 15, 2017
Do you have an industry update?