The RBA has left interest rates on hold for another month.The RBA has also dropped its comments about the Australian dollar being “still uncomfortably high”, and is now stating that the “exchange rate has declined further, which, if sustained, will assist in achieving balanced growth in the economy”.
“In the Board’s judgement, monetary policy is appropriately configured to foster sustainable growth in demand and inflation outcomes consistent with the target,” RBA governor Glenn Stevens said in a statement.
“On present indications, the most prudent course is likely to be a period of stability in interest rates.”
Mortgage Broker What If We Finance noted that with the cash rate at record low of 2.5%, the RBA has not changed the cash rate since August last year.
This move was widely expected by the markets as result of unexpected inflation figures and raising house prices. Conversely ANZ’s job advertisements survey for January showed the fragility in the labour market with ads continuing to fall.
While signs are pointing to a reduced chance of another rate cut, Mortgage Broker What If We Finance says alot can change quickly and interest rates stagnating is not set in stone.