The RBA has held the cash rate at its record low but the next move in interest rates will be a rise.
While the result from the first Reserve Bank meeting of the year was widely expected, interest rates won’t stay at their record lows forever.
A slowdown in housing market conditions has helped to alleviate some of the pressure on the RBA to raise the cash rate.
Slower housing market conditions were likely one of the key topics of conversation for the RBA when it held the cash rate at 1.5% in September.
The RBA has held the cash rate at 1.5% for its 10th consecutive meeting today, on the back of upbeat labour market reports, with unemployment falling to 5.5% since the last meeting and a trend towards more job advertisements.
While the cash rate has remained on hold, financial markets are starting to lean toward a cut in official interest rates rather than a stable rate setting
The decision to scrap stamp duty for properties with a price tag under $650,000 is likely to boost demand for this under-represented segment of the market.
As widely expected, the RBA kept the cash rate on hold today at the record low setting of 1.5%. While a broad range of economic factors would have been discussed at the meeting, the housing market would have been front and centre in the conversation.
The Reserve Bank of Australia seems to be stuck between a rock and a hard place, today announcing it has left the cash rate on hold at the record low setting of 1.5% in a widely anticipated decision.