RBA leaves rates on HOLD! Cash rate has been left unchanged at 1.50%.
As expected, the Reserve Bank of Australia has left the cash rate unchanged at its last monthly board meeting for 2016.
There was no imperative for the RBA to change rates. The RBA and the rest of the world is watching the United States, particularly in relation to changes in that country’s interest rates. When you look at the latest economic data, there was no reason for the Reserve Bank to change its current stance on monetary policy.
The board will meet again in February 2017 and the question on everyone’s mind is ‘what is the RBA outlook for 2017 and beyond’. There are mixed views with most economists now moving towards the view of a possible upward trend in interest rates some time in 2017.
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