RBA Rate Decision
The Reserve Bank of Australia (RBA) has left the official cash rate on hold at 2% at its second monetary policy board meeting for 2016. The cash rate was largely tipped to remain on hold today, with all 31 economists and analysts surveyed in finder.com.au’s monthly Reserve Bank survey agreeing the cash rate would steady. Speaking about the central bank’s decision, the chief executive of Mortgage Choice, John Flavell, said uplifting economic data would have pleased the RBA. “Strong economic data, including moderate property price growth and a bounce back in consumer sentiment, provided the Reserve Bank of Australia with no reason to change the official cash rate. “According to the Westpac Melbourne Institute of Consumer Sentiment, confidence rose 4.2% in February, taking the Index to 101.3. As a result, optimists now outweigh pessimists. “In addition to the recent bounce back in consumer sentiment, data from CoreLogic shows property values continue to rise, with dwelling values across the combined capital cities climbing 0.5% throughout February.” However, Flavell isn’t ruling out a cash rate cut later this year. “There continues to be a significant level of volatility in both oil prices and the share market. If this market volatility starts to have an impact on consumer and business confidence, we may see the Board react via another rate cut,” Flavell said.