Dr Shane Oliver, Head of Investment Strategy and Chief Economist takes a look at the outlook for official interest rates in Australia following the RBA’s latest monthly board meeting.
The key points are as follows:
- The RBA left the cash rate at 0.1% at its April meeting.
- While the economy is recovering faster than expected the conditions for a rate hike – actual inflation sustainably in the 2-3% target zone and wages growth well above 3% – are unlikely to be met for several years.
- The RBA will likely start to slow its quantitative easing measures through this year though.
Download pdf copy: Oliver’s Insights: RBA on hold and likely to remain easy for a long while yet as full employment gets more of a look in.
If you would like to discuss any of the issues raised by Dr Oliver, please call on +61 07 5610 1915 or email reception@themoretongroup.com.au.