RBA to leave cash rate on hold: survey

RBA to leave cash rate on hold: survey

04 March 2013 by Simon Parker 0 comments

Staff Reporter

Most Australian homeowners expect the Reserve Bank of Australia (RBA) to leave the official cash rate unchanged for a third consecutive month.

According to a new survey by Loan Market Group, 53 per cent of the 397 respondents said they expect the RBA to maintain the current cash rate – leaving it at three per cent at its March board meeting.

Thirty-nine per cent of the homeowners surveyed predicted the RBA will lower the cash rate by 25 basis points on Tuesday.

“The RBA has released some firm statements in the past several weeks that indicate the cash rate will be held constant in the short term and used in reaction to any economic indicators falling below targeted ranges,” Loan Market spokesperson Paul Smith said.

AMP’s chief economist, Shane Oliver, said last week that he expects more rate cuts to come this year.

Mr Smith said it appears homeowners are well aware of the state of the Australian economy and the subsequent likelihood of rate cuts. In a similar survey last month, 55 per cent of homeowners correctly predicted the RBA would leave rates unchanged.

“Consumer confidence has been varied for some time but these survey results indicate that homeowners are aware of the multitude of facts the RBA considers when it asseses the cash rate and the impact it can have on their home loans and deposited savings,” he said.

Mr Smith added that with many lenders continuing to reduce the interest rates on fixed products, there was still a strong anticipation of interest rates going down at some point in the next several months.

Staff Reporter

Most Australian homeowners expect the Reserve Bank of Australia (RBA) to leave the official cash rate unchanged for a third consecutive month.

According to a new survey by Loan Market Group, 53 per cent of the 397 respondents said they expect the RBA to maintain the current cash rate – leaving it at three per cent at its March board meeting.

Thirty-nine per cent of the homeowners surveyed predicted the RBA will lower the cash rate by 25 basis points on Tuesday.

“The RBA has released some firm statements in the past several weeks that indicate the cash rate will be held constant in the short term and used in reaction to any economic indicators falling below targeted ranges,” Loan Market spokesperson Paul Smith said.

AMP’s chief economist, Shane Oliver, said last week that he expects more rate cuts to come this year.

Mr Smith said it appears homeowners are well aware of the state of the Australian economy and the subsequent likelihood of rate cuts. In a similar survey last month, 55 per cent of homeowners correctly predicted the RBA would leave rates unchanged.

“Consumer confidence has been varied for some time but these survey results indicate that homeowners are aware of the multitude of facts the RBA considers when it asseses the cash rate and the impact it can have on their home loans and deposited savings,” he said.

Mr Smith added that with many lenders continuing to reduce the interest rates on fixed products, there was still a strong anticipation of interest rates going down at some point in the next several months.

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?