The Reserve Bank of Australia has announced its decision on the November cash rate.
The board met on Tuesday 6 November to discuss whether the rate should remain the same or whether it was necessary to increase or decrease the rate.
Governor of the RBA Philip Lowe announced at 2.30pm the rate would be staying the same at 1.50%.
The rate has now been the same for 27 consecutive months and many analysts believe it will remain at this rate into 2019 and possibly to 2020.
This announcement was mostly expected from the industry, with 98% of brokers believing it would remain the same, according to a HashChing survey.
The RBA shadow board also attached a 53% confidence that the rate would remain the same.
One hundred of experts at Finder.com.au predicted it would remain as well.
Lowe has previously said the next move of the cash rate will be a hike, however some analysts are now suggesting the environment at the moment could call for a decrease.
Michael Yardney, from Metropole Property Strategists, said, “The RBA must be a little worried with the current crisis in consumer confidence. If anything it may want to err on the side of caution and lower rates, but it is likely to take a wait and see approach.”
AMP’s Shane Oliver had said, “The fall in the official unemployment rate to 5% helped by above trend economic growth is good news.
“But the slide in home prices in Sydney and Melbourne risks accelerating as banks tighten lending standards which in turn threatens consumer spending and wider economic growth and inflation and wages growth remain low. Against this backdrop it remains appropriate for the RBA to leave rates on hold.”
