At 2:30pm today the RBA announced it will be leaving the cash rate on hold at 2.5 per cent.
Commenting on the announcement, AMP Capital chief economist Shane Oliver pointed to recent RBA comments about “a period of stability”.
“Recent comments from the RBA governor Glenn Stevens [are] clearly signalling that rates will stay on hold for some time, and prior to moving rates they would probably change that statement,” said Mr Oliver.
“Not enough has happened to justify moving rates,” he said.
“The economic data has been somewhat mixed. There have been good housing indicators, some solidness in retail sales, but nothing dramatic, and certainly not enough to signal a change,” said Mr Oliver.
ANZ chief economist Warren Hogan said the economy is playing out “as expected”, with non-mining activity (particularly construction) picking up in major cities.
“The higher Australian dollar is acting as modest constraint on the economy. Housing continues to do well but without signs of excessive credit growth,” said Mr Hogan.
ANZ expects the next rate change to be a hike in May 2015, he said.
