The Reserve Bank of Australia has today announced the official cash rate for February following its monthly board meeting. The RBA board has decided to keep the cash rate at 1.5 per cent, a move predicted by most industry experts.
All of the 25 surveyed experts on the finder.com.au panel correctly predicted the record low cash rate to remain unchanged.
The head of investment strategy and chief economist at AMP Capital, Shane Oliver, correctly predicted the RBA’s decision, but he said that despite strength in some economic indicators, factors such as low inflation, stunted wage growth, consumer uncertainty and the high exchange rate would have all been considered by the RBA in its decision to hold rates where they were.
“While confidence, jobs and non-mining investment are strong, inflation remains below target, wages growth remains around a record low, uncertainty is high regarding the outlook for consumer spending and the Australian dollar is too strong. As such, it is too early for the RBA to consider raising interest rates,” Mr Oliver said.