The Reserve Bank has once again left the cash rate untouched.
At its last board meeting for the year today, the RBA
chose to leave the official cash rate at 2.5%, marking the 15th consecutive monthly meeting in which the Bank has chosen to remain on the sidelines.
Economists have widely tipped the RBA
to leave the cash rate unchanged. CoreLogic RP Data research analyst Cameron Kusher
said the decision comes as the non-mining sector continues its recovery and commodity prices fall.
“With home value growth continuing to moderate in November and dwelling and work approvals recently slipping, there may be some concern that the housing market alone is not providing enough economic stimulus as the mining and resources investment activity subsides and commodity prices fall. Nevertheless the RBA
has again kept official interest rates on hold this month,” he said.
According to the most recent Reserve Bank survey conducted by finder.com.au, 92% of economists and industry experts (34 out of 37) surveyed predict that the next cash rate move will be an increase. Interestingly, 8% (3 out of 37) are forecasting the next cash rate move to be a decrease – a shift from last month when only one respondent predicted another cash rate cut.