The Reserve Bank has left the official cash rate on hold at 2% for the fifth consecutive month at its October monetary policy board meeting.
This decision comes as no surprise to many economists and analysts, in particular Mortgage Choice CEO John Flavell
, who says the lower Australian dollar and stable business conditions and property prices would have eased the central bank’s concerns.
“The decision to leave the cash rate on hold was unsurprising to say the least. The lower Australian dollar has provided some support for the country’s growth and inflation. Furthermore, new data shows business conditions remain relatively stable and property price growth continues to track upwards – albeit at a slower pace than the beginning of the year,” he said.
However, Flavell says he isn’t ruling out future cash rate cuts.
“Of course, today's decision doesn't mean we have necessarily seen the last of the rate cuts. What happens both locally and abroad over the next few months will determine the future actions of the Reserve Bank. If consumer sentiment, business confidence and economic growth perform sluggishly, we may see the Reserve Bank cut rates again,” he said.