RBA Interest Rate Decision November 2017
The last time the Reserve Bank of Australia raised interest rates, the AFL grand final had just resulted in a draw, Prince William and Kate Middleton had only just become engaged and Steve Jobs and Osama bin Laden were still alive.
It was seven years ago today, and the RBA board has met 76 times since, cutting 12 times and hiking zero.
The result of this month’s meeting, held on Melbourne Cup day, is pretty much seen as a foregone conclusion, with almost all economists expecting the central bank to leave the cash rate at a record low 1.5 per cent, where it has been since August 2016.
In terms of the broader outlook, though, it’s a rabble. ANZ chief economist Richard Yetsenga is calling for hikes next year, Credit Suisse and independent economist Stephen Koukoulas say cuts make more sense, while UBS and Westpac reckon the RBA should stay on the sidelines for the foreseeable future.
Before last week’s unimpressive inflation result, the market was pricing in a hike from the RBA in August next year. Now, with that inflation data in hand, that expectation has been pushed out to February 2019.
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