December Interest Rate Decision

December 22, 2017 3:09 pm

No RBA Rate Rise for Seven Years and Counting!

While economists keep suggesting that rate rises are around the corner, economic data doesn’t support the move. As a result, the Reserve Bank of Australia
(RBA) has left interest rates on hold, yet again. Here’s the deal: looking back at historical data, it has now been just over seven years since we
experienced an RBA rate rise. This unprecedented seven-year run began in November 2010 and hasn’t looked back since. The last record between rate rises
topped 59-months – Dec 1994 to Nov 1999. Now: this record broke in October 2015, and we’ve since added another 25-months. But, it looks like the run
will continue for a little longer.

What’s the bottom line? Well, the latest data indicates retail sales, wage growth and inflation are weaker than expected. Plus, the housing market is continuing
to slow as investors sit tight, rather than buy more property.