Powered by MOMENTUM MEDIA
Reserve Bank keeps cash rate on hold in July

Reserve Bank keeps cash rate on hold in July

Killian Plastow
— 1 minute read

The Reserve Bank of Australia has decided to hold the official cash rate at 1.75 per cent following its July board meeting.

With inflation data for the second quarter not available until late July, the RBA is not expected to change the cash rate until next month at the earliest.

The ASX 30-Day Interbank Cash Rate Futures July 2016 contract anticipated the steady cash rate, pricing in a 90 per cent chance it would be held on 4 July.

Advertisement
Advertisement

AMP chief economist Shane Oliver said the RBA is “likely in wait-and-see mode” following the volatility caused by the UK’s decision to leave the European Union, adding that last month the central bank had “expressed comfort with current monetary settings”.

The Australian National University’s Centre for Applied Macroeconomic Analysis’ (CAMA) RBA shadow board assigned a 6 per cent chance to a rate hold

Melbourne Business School associate professor Mark Crosby, a member of the CAMA RBA shadow board, suggested that while the Brexit vote had undoubtedly led to volatility, there is “very little reason” for it to affect the Australian cash rate.

“The Brexit vote has obviously caused volatility in financial markets in recent days, but this Leave result has changed nothing in terms of Australia’s fundamentals,” he said.

 

 

Reserve Bank keeps cash rate on hold in July
investordaily image
ID logo

related articles

  • Major banks update home lending policy

    Two of the big four banks have updated their home loan serviceability assessment policy in response to APRA’s regulatory amendments. ...

  • Aus ETFs surpass $50bn

    The Australian exchange-traded fund industry has overtaken the $50-billion milestone, according to the newly published report by BetaShares....

  • Banking reputation at rock bottom

    One chief executive has said that the reputation of bankers was at rock bottom and hoped that it would not get any worse. ...

promoted stories

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.