Economists are pencilling in an extended period of steady interest rates after last week’s cut sent the official cash rate to a new record low.
Some analysts are saying they can see the next move upward in rates being as far off as three years away.
A new Bloomberg survey has revealed that most economic analysts expect the RBA to keep rates steady now until well into next year.
And economists from all the four major banks all seem united in the opinion that rates won’t rise for at least 18 months.
ANZ senior economist Justin Fabo, for example, is one of those economists.
“Rates are on hold until well into 2017 when the RBA may start to raise them again,” he told The Age.
“We’re confident rates will be untouched for the next six.”
Macquarie Research are actually expecting an additional rate cut in August.
“The growth and inflation outlook suggests the RBA sees no threat of a rate hike until at least 2018,” Macquarie Research analysts said in a note to investors.
“We remain of the view that the economy is likely to evolve in a way that warrants additional monetary policy support. Rate cuts are coming, but later.”