Reserve Bank leave rates on hold for 12th consecutive month

Stamp Duty

The Reserve Bank’s monthly board meeting has ended as most predicted – with interest rates remaining unchanged. 

It’s now a 12th consecutive month that rates have stayed at the record-low level of 2.5 per cent. 

Not a single economist surveyed by AAP had predicted a rate change this month, and they were proved right. 

AMP Capital chief economist Shane Oliver spoke to and said the rates remained the same because not enough happened since the July meeting to warrant it. 

“The economic data has been somewhat mixed,” he said. 

“There have been good housing indicators, some solidness in retail sales, but nothing dramatic, and certainly not enough to signal a change.” 

Chief economist Bill Evans from Westpac, also speaking to, said the RBA was waiting for some sort of change in the economy before it will commit to any policy option. 

“Despite market pricing now pointing to a rate cut over the next six months there’s no evidence in the minutes to indicate that the board is seriously considering this option,” he said. 

ANZ chief economist Warren Hogan said in The Adviser that the economy was playing out as expected, with non-mining investment on the up, and mining investment in decline. 

“The higher Australian dollar is acting as modest constraint on the economy. Housing continues to do well but without signs of excessive credit growth,” he said.


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