RBA keeps rates on hold for record 17th consecutive meetings

RBA keeps rates on hold for record 17th consecutive meetings
RBA keeps rates on hold for record 17th consecutive meetings

The second meeting of the Reserve Bank of Australia for 2018 saw no change in the official cash rate.

The central bank's last move saw it go to 1.5 percent at the August 2016 meeting, so rates have been held steady for 17 meetings.

It was 18 meetings ago that they last came down. 

It is the longest run of steady rates. Last rate decision was a run of were 17 meetings (inclusive) between their August 2013 meeting and December 2014 where they held at 2.5 percent. There was another run of 16 meetings between July 2002 and October 2003 where rates were held at 4.75 percent.

Almost every economist predicted a hold at the first meeting of the year.

Most don't foresee any change throughout much of 2018.

AMP Capital senior economist Shane Oliver said RBA will hike rates, but not yet.

"High levels of business confidence, strong jobs growth and the RBA’s forecasts for stronger growth and inflation point to eventual rate hikes.

"But against this, continuing very weak wages growth, sub-target inflation, the $A remaining too high and uncertainty around the outlook for consumer spending all argue for rates to remain on hold or even fall.

"So on balance it makes sense to continue to leave interest rates on hold."

For a full list of what the 33 experts in Finder.com.au's RBA Survey have to say on the RBA cash rate decision click here.

Joel Robinson

Joel Robinson

Joel Robinson is a property journalist based in Sydney. Joel has been writing about the residential real estate market for the last five years, specializing in market trends and the economics and finance behind buying and selling real estate.

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