RBA predicted to hold cash rate

Economists and banking experts unanimously agree the Reserve Bank will hold the current cash rate ahead of the RBA's monthly meeting.

Many believe May rate cuts have yet to filter down into the economy ,with others citing an improved employment rate, increased housing costs and overseas financial conditions as other reasons to hold the cash rate.

All 33 experts surveyed for the finder.com.au Reserve Bank Survey believe the RBA will continue to hold the cash rate. The majority of experts (56% or 18 experts) are expecting the cash rate to start rising next year, possibly the last quarter of 2016.

HSBC's chief economist Paul Bloxham said he is still watching and waiting to see the impact of the 50 basis points of cuts delivered in the first half of this year, with the Commonwealth Bank's chief economist Michael Blythe adding the Reserve Bank is in "wait and see" mode while they assess incoming data, such as the next Consumer Price Index due at the end of July.