The Reserve Bank of Australia decided at this week’s board meeting to leave the official cash rate on hold at 2% for the fifth consecutive month. Mortgage Choice chief executive officer John Flavell said the decision was “unsurprising”, as economic data did not warrant another cash rate cut.
“The lower Australian dollar has provided some support for the country’s growth and inflation,” he said. “Furthermore, new data shows business conditions remain relatively stable and property price growth continues to track upwards – albeit at a slower pace than the beginning of the year.”
Flavell said that, while Sydney’s property price growth was lacklustre lately, the capital city had performed “incredibly well” over the last 12 months.
“The Australian economy is tracking along fairly well at the moment, providing the Reserve Bank with no urgent reason to change the current monetary policy setting,” he said. “That is not to say we have seen the last of the rate cuts altogether. What happens both locally and abroad over the next few months will determine the future actions of the Reserve Bank.”