RBA unlikely to cut rates: AMP Capital

— 1 minute read

The Reserve Bank of Australia is unlikely to cut the interest rate at Tuesday’s meeting despite recent low inflation readings, according to AMP Capital.

Inflation experienced a “slump” in the September quarter, said AMP Capital chief economist Shane Oliver, however the inflation outcome remained in-line with the Bank’s expectations, making a cut in February unlikely.

Additionally, Mr Oliver said the RBA will likely “want to monitor the recent uptick in lending to property investors and see how the economy performs”.


“As a result all eyes will be on the post-meeting statement and the Statement on Monetary Policy to be released Friday,” he said.

The RBA is expected to cut its growth forecasts given the contraction in the market seen in the September quarter, Mr Oliver said, with the return of inflation to its target possibly being pushed out as well.

“Our assessment remains that - with record low wages growth, ongoing spare capacity, an increasing risk that low inflation will feed on itself and the Australian dollar remaining too high - the RBA will cut rates again around May,” he said.

Read more:

AMP alters approach to authorised representatives

Fixed income remains expensive: Morningstar

Australia’s competitiveness being ‘eroded’

Investors poised to reduce cash holdings

Data undermines case for industry fund changes



RBA unlikely to cut rates: AMP Capital
investordaily image
ID logo

related articles

  • JP Morgan partners with Calastone

    JP Morgan Asset Management has signed on to a new service from global funds network Calastone, introducing automated settlements to its Morg...

  • Bendigo provisions $143m

    The bank has taken a grim outlook on the COVID-19 crisis and has provisioned for downside economic scenarios. ...

  • MLC unveils new advice business

    MLC has announced a new licensee network for self-employed advisers and advice businesses as it attempts to create a “more focused and sus...

promoted stories

Website Notifications

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