 RBA leaves rates on hold
The Reserve Bank of Australia met today and left the cash rate on hold, at 3 per cent.
Macquarie Group interest rate strategist Rory Robertson was predicting no changes to the rates, saying housing, retail and car sales have been rising over recent months. He believes there needs to be further increases in unemployment before the RBA will consider cutting rates again.
"The business sector is struggling, but at this stage I think the Reserve Bank is waiting and watching," he continued.
"For it to cut further, it will need several weak job reports in a row and unemployment punching up through 6 per cent.
"Further falls in full time employment and further rises in unemployment would take us a little bit further down the path to another rate cut."
Speaking before the decision, CommSec economist Craig James told Sky News Business that the RBA was in "wait and see mode".
Recent research conducted by InfoChoice showed that in the last two months, whilst there was no official cash rate movement, the banks made plenty of rate changes. Recently the Commonwealth Bank of Australia increased it's home loan rates despite no changes in the official rate.
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