RBA Announces Its September Interest Rate Decision
Increases over the last week by the likes of Westpac and Suncorp were a factor in the RBA’s decision to leave official rates on hold for yet another month at 1.5 per cent. It marks the longest ever run of interest rate stability in Australia, with the last movement (a cut) happening back in August 2016.
During its last meeting on 7 August, the RBA board had examined an economy in generally good health, with steady growth in retail sales and employment, housing prices continuing to come off the boil (except in the booming Hobart market) and overall growth expected to sit just above 3 per cent in 2018 and 2019.
Of concern, though, is the ongoing drought gripping NSW and much of Queensland, which is impacting agriculture production and exports.
Inflation – the key driver of interest rate movements – remains relatively subdued at 2.1 per cent, and is expected to remain subdued for some time to come.