Interest Rates On Hold

At its first meeting of 2019, the Reserve Bank Board kept official interest rates on hold at 1.5%, despite some commentators speculating that the RBA will cut interest rates this year. 

The backdrop remains one of a mixed economic picture for Australia, but jobs growth is strong, and unemployment is likely to gradually decline towards 4.5% over the next few years. The recent inflation release of 1.8% remains slightly below the RBA’s preferred range of 2-3%, but not low enough to warrant an interest rate cut. 

It is Macquarie Bank’s view that Australian interest rates will remain on hold at 1.5% throughout 2019 and into 2020. 

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