The Reserve Bank of Australia has left the official cash rate – 2% – on hold for the ninth consecutive month. Mortgage Choice chief executive officer John Flavell says the decision was unsurprising.
“While there is still scope for the RBA to cut the cash rate over the coming months, the trigger for an immediate cash rate cut was not there this month,” he says. “Property values continue to climb fairly steadily across most capital cities, with values increasing 0.9% over the month of January. In addition, business confidence and conditions remain surprisingly robust, while underlying inflation remains within the RBA’s target band range.”
New data from the Australian Bureau of Statistics found the key measures of inflation rose 0.55% in the December Quarter, while annual inflation remains below the RBA’s 2%-3% target band range.