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RBA cash rate decision

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By Reporter
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2 minute read

The Reserve Bank of Australia has today announced the outcome of its monthly board meeting.

At 2.30pm today, the RBA announced the cash rate will stay on hold at 2.5 per cent.

AMP Capital chief economist Shane Oliver said this “holding pattern” will remain for some time. 

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“The Reserve Bank has cut interest rates to record lows in response to the still unfolding mining investment slowdown to boost the rest of the economy, and there's tentative evidence that it's working, but it's still tentative,” Mr Oliver said. 

“The most recent Budget has had a negative impact on confidence, and that's thrown a bit of a spanner in the works, and we've got relatively low inflation. 

“So on the one hand the economy hasn't picked up enough to justify a rate hike, and inflation isn't a problem either; on the other hand the economy isn't collapsing, justifying rate cuts, so we're literally in a holding pattern.”

Mr Oliver added the next rate hike is likely to be late this year or early next year.

RBA cash rate decision

The Reserve Bank of Australia has today announced the outcome of its monthly board meeting.

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