As widely expected, the Reserve Bank of Australia has decided to leave the official cash rate on hold in December.
The RBA governor, Glenn Stevens, noted that “following the Board’s decision last month to lift the cash rate, and the subsequent increases by financial institutions, lending rates in the economy are now a little above average”. Mr Stevens further noted that inflation is expected to change little over the next few quarters, however it is expected to increase somewhat over the medium term if the economy grows as expected.
Borrowers will earn a repreive from further rate rises for the next couple of months as the RBA does not meet in January except in exceptional circumstances. If official rates do move, the first chance the RBA can move it will be in February.
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