Invest
Top Aussie economists reveal cash rate predictions
Australia’s leading economists have unanimously agreed on what the RBA’s cash rate decision tomorrow will be, and have offered up predictions for when the next cash rate move will occur.
Top Aussie economists reveal cash rate predictions
Australia’s leading economists have unanimously agreed on what the RBA’s cash rate decision tomorrow will be, and have offered up predictions for when the next cash rate move will occur.
The finder.com.au RBA cash rate survey has revealed that all 34 surveyed economists and experts expect the RBA will hold the cash rate at 1.5 per cent for May 2017 when it announces its decision tomorrow.
Looking ahead, 78 per cent of panellists predict the next change to the cash rate will be an increase. This is a slight dip from the sentiment shown in April when 86 per cent of panellists predicted the next move to be an increase.
However 81 per cent of those predicting an increase don’t see it happening until 2018, with 60 per cent not expecting it until April 2018 at the earliest.
While the experts stand united in predicting no change this month, rate changes have not been uncommon at this time of year according to Graham Cooke, insights manager at finder.com.au.
“In the last seven years, the Reserve Bank has cut rates five times in May. By this time of year, inflation and GDP data is released and the Bank has enough confidence to make a move,” Mr Cooke said.
“However, economists are universal in expecting no movement tomorrow.”
While the recently released inflation figures are moving into the RBA's target range they are still on the low side according to Michael Yardney from Metropole Property Strategists.
“Until job numbers improve it would be safe to assume the RBA won’t be hiking interest rates to slow the property markets down,” Mr Yardney said.
“On the other hand they can't afford to drop rates and fuel our property markets.”
Laing+Simmons managing director Leanne Pilkington also believes there are insufficient drivers to force the Reserve Bank to adjust rates at this time.
“While recent inflation figures appear to suggest the economy is moving in the right direction, concerns around demand for employment remain, and the forthcoming Federal budget is yet to go under analysts' microscopes,” Ms Pilkington said.
“Against this background, we believe the prudent course is for the Reserve Bank to hold.”
Meanwhile Monash University Associate Professor Mark Crosby believes Australia will wait to see what happens in the US before increasing the cash rate here.
“The RBA will wait another month or two to evaluate global developments and assess the probability of a new US rate rise before considering raising,” Mr Crosby said.
Spending
Aussies’ spending on subscription rises, but will it stick?
Aussies carved out a greater slice of their spending budgets when it came to streaming services during the pandemic. ...Read more
Spending
Qantas announces $2.3bn loss but plans to be flying again by Christmas
Australia’s national carrier has revealed the devastating impacts border closures have had on the company, while noting a possible return date to international operations in its full-year market upd...Read more
Spending
Will your frequent flyer status be impacted by COVID?
In the latest bid to kick-start the travel industry post-lockdowns, Australia’s largest airline has announced that it is rewarding its frequent flyers by extending their status. ...Read more
Spending
‘Technology, not taxes’: Why not both?
The government has joined the rest of the world in looking to offset carbon emissions, albeit through technology, not taxes, despite the possibility that positive taxes and incentives could potentiall...Read more
Spending
Social media spending balloons to $118bn
Australians are spending a whopping $118 billion on discretionary items through social media and apps, fresh figures have revealed. ...Read more
Spending
Why payphones are set to become free
Australians will now be able to make free calls from any Telstra payphone under a new initiative aimed at helping those who are in need, Telstra’s CEO has revealed. ...Read more
Spending
7 surprisingly simple ways to save money and help the environment
The rising costs of living is providing consumers with a rare win-win scenario by saving money and helping the environment. ...Read more
Spending
How much are you wasting on unused subscriptions?
Australians are continuing to pay for subscriptions they are not using, costing households up to $2,000 a year, new banking figures have revealed. ...Read more
APRA’s mortgage crackdown, the power of DeFi and last-minute tax tips
Listen now
What to expect as the end of lockdown looms? Will the Stage 2 tax cuts boost your tax return? Where should investors be looking as the economy reopens?
Listen now
Could property prices inflate by another 20%? What’s happening in recent dividend announcements? Did your fund fail the YFYS test?
Listen now
What does the NSW regional permit mean for property investors? Who really wins from the BHP-Woodside merger?
Listen now
Spending
Aussies’ spending on subscription rises, but will it stick?
Aussies carved out a greater slice of their spending budgets when it came to streaming services during the pandemic. ...Read more
Spending
Qantas announces $2.3bn loss but plans to be flying again by Christmas
Australia’s national carrier has revealed the devastating impacts border closures have had on the company, while noting a possible return date to international operations in its full-year market upd...Read more
Spending
Will your frequent flyer status be impacted by COVID?
In the latest bid to kick-start the travel industry post-lockdowns, Australia’s largest airline has announced that it is rewarding its frequent flyers by extending their status. ...Read more
Spending
‘Technology, not taxes’: Why not both?
The government has joined the rest of the world in looking to offset carbon emissions, albeit through technology, not taxes, despite the possibility that positive taxes and incentives could potentiall...Read more
Spending
Social media spending balloons to $118bn
Australians are spending a whopping $118 billion on discretionary items through social media and apps, fresh figures have revealed. ...Read more
Spending
Why payphones are set to become free
Australians will now be able to make free calls from any Telstra payphone under a new initiative aimed at helping those who are in need, Telstra’s CEO has revealed. ...Read more
Spending
7 surprisingly simple ways to save money and help the environment
The rising costs of living is providing consumers with a rare win-win scenario by saving money and helping the environment. ...Read more
Spending
How much are you wasting on unused subscriptions?
Australians are continuing to pay for subscriptions they are not using, costing households up to $2,000 a year, new banking figures have revealed. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
