RBA Decision No Big Surprise

The Reserve Bank of Australia was widely expected to leave the official cash rate on hold this week – and it did. For the third straight month, our interest rates will remain at a record low 1.5%.

The move was expected after new data from the Australian Bureau of Statistics reported a surge in inflation – above economist expectations.

Mortgage Choice chief executive officer John Flavell said the latest Consumer Price Index data showed consumer prices rose by 0.7% over the last quarter – up from 0.4% in the June quarter. Moreover, the annual CPI rate quickened to 1.3% from 1%.

However, Mr Flavell said further rate cuts in 2017 could not be ruled out at this point in time.   “Rates could still fall lower over the coming months depending on what happens in the domestic and global markets. If this happens, all eyes will look to Australia’s lenders to see if they follow suit and pass on the rate cuts to their customers,” he said.

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