The Reserve Bank of Australia (RBA) has kept the official cash rate ‘on hold’ at 1.5 per cent at its board meeting today.
The official cash rate will remain unchanged at 1.5 per cent as a result of today's decision by the RBA.
The decision was widely anticipated, with the futures market pricing in a 92 per cent of no change to the cash rate at the close of trading on Friday.
All of the commentators surveyed by finder.com.au correctly predicted the RBA would stay on hold.
CBA economist Savanth Sebastian said the RBA is comfortable about the medium-term outlook for Australia, but the central bank is likely to keep a close eye on household consumption.
IFM Investors chief economist Alex Joiner said there is "no justification" for a rate move.
"If anything, economic performance and risks still suggest there should be an easing bias and property markets/debt accumulation suggest a tightening one," Mr Joiner said.
The Centre for Applied Macroeconomic Analysis RBA Shadow Board attached a 56 per cent probability to 1.5 per cent being the "appropriate setting".
"Economic indicators for Australia look benign – at least for the moment. Recent revisions to their economic forecasts by leading financial institutions reveal that another quarter of economic contraction, following the September quarter 2016, may be on the cards," said the Shadow Board in its June statement.
"Last month’s budget is unlikely to significantly alter the outlook, nor are the developments overseas. The RBA Shadow Board continues to advocate a hold-and-wait policy."
Economists agree that the Reserve Bank is likely to remain in inflation fighting mode until December. ...