Rate move not on today’s Reserve Bank agenda

By Anita Savage

Rates have been at a record low for more than a year now, after the Reserve Bank last moved on official interest rates in August 2013, when it cut the rate to 2. 5 per cent.

National Australia Bank senior economist David de Garis says he expects rates to remain on hold for another year.

The RBA has been reluctant to raise interest rates with weak employment growth and fragile consumer confidence, however strong growth in house prices - confirmed by RP Data figures yesterday - is a factor weighing against further rate cuts.

National Australia Bank senior economist David de Garis says there have been some signs of improvement in the economy, but not enough.

“It tells us the Reserve Bank is I guess in some ways frustrated with the lack of response in aggregate demand to the low interest rates that we’ve had,” he said.

The Reserve Bank board is expected to leave the official interest rate unchanged when it meets today.

Read more here: ABC


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