RBA keeps interest rates on hold for another month
The trend has continued, with the Reserve Bank of Australia announcing that there will be no change in the current cash rate.
This means that for the 15th consecutive month Australia’s official cash rate has remained at the record low of 2.5% pa.
In a statement released by the RBA Governor Glenn Stevens, special mention was made of Australia’s current exchange rate as one of the key deciding factors to leave the cash rate where it is:
“The exchange rate has traded at lower levels recently, in large part reflecting the strengthening US dollar. But the Australian dollar remains above most estimates of its fundamental value, particularly given the further declines in key commodity prices in recent months. It is offering less assistance than would normally be expected in achieving balanced growth in the economy.”
Whilst it is expected for the cash rate to rise in 2015, most economists are predicting that this won’t be occurring until later in the year, around August. However with housing prices continuing to rise in most major cities, borrowers will be keeping a close eye on any unexpected changes in the near future.