The Reserve Bank has left the cash rate untouched today at 2.25%, after dropping it 25 basis points last month at its February board meeting.
According to a monthly Reserve Bank survey, economists and analysts largely tipped the cash rate to remain on hold this month. The survey compiled by finder.com.au found that 21 of the 37 economists and analysts surveyed (57%) expected the cash rate to remain steady at 2.25% today.
Out of the four major banks, NAB
was the only lender who forecast no change.
“It will take some time to see the impact of the February cut,” NAB
’s chief economist, Alan Oster said.
This same sentiment was echoed by the remaining analysts who predicted the cash rate to remain on hold. However, some respondents also noted concern over another rate cut overheating the housing market.
Despite these concerns, many economists and analysts believe a further rate cut in the future is imminent due to a soft manufacturing sector, sluggish business investment and rising oil prices.
“A rate cut is a ‘live’ option at every Reserve Bank Board meeting over the next few months. It is a question or art rather than science when RBA
Board members feel it is the right time to move,” CommSec’s chief economist, Craig James said.