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RBA reveals September cash rate call

By Cameron Micallef · September 03 2019
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RBA reveals September cash rate call

By Cameron Micallef
September 03 2019
Reading:
egg
RBA

RBA reveals September cash rate call

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By Cameron Micallef · September 03 2019
Reading:
egg
RBA

The Reserve Bank of Australia (RBA) has announced its decision on the official cash rate for September, following market speculation that interest rates would stay put. 

The RBA has decided to maintain interest rates for the second month in a row, holding the official cash rate at 1.00 per cent.

IFM Investors’ Alex Joiner was not surprised by today’s announcement.

“The RBA has stated that it would like an accumulation of evidence before it acts again to ease policy. So it is clear it wants to monitor the data flow, particularly that on the labour market, before it moves again,” he said.

Prior to the announcement, AMP Capital chief economist Shane Oliver had indicated his belief that the central bank should reduce the rate.

“Given the threats to growth from falling housing construction, weak consumer spending and the trade war, along with the RBA’s own forecasts showing no progress in reducing unemployment, boosting wages growth or reaching its inflation target anytime soon, the RBA should be cutting again on Tuesday,” Mr Oliver had said.

Predicted future moves

A Finder study of Australia’s leading economists found that three-quarters of the 40 surveyed expect the cash rate to drop before Christmas, with 61 per cent predicting the next cut to occur in November.

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The online comparison site’s insights manager, Graham Cooke, said hed never seen such a strong bias towards a move in a particular month, as predictions are usually spread out over a couple of months.

“It shouldnt be a total shock – November is in the three most popular months for moves since the RBA started this process in 1990,” he commented.

“We have seen 10 moves applied in November and December, and 11 in May,” Mr Cooke said.

RBA reveals September cash rate call
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About the author

Cameron is a journalist for Momentum Media's nestegg. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leveraging their insights to grow your portfolio.

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About the author

Cameron is a journalist for Momentum Media's nestegg. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leveraging their insights to grow your portfolio.

Join The Nest Egg community

We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians

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