In June the RBA made a decision to cut the cash rate by 25 basis points. In the weeks following it became apparent that momentum the local economy was stronger than had generally been expected. Economists have stated that the RBA is currently ahead of the curve and given our strong local economy coupled with the impending risk of inflation, another rate decrease does seem unlikely.
So after cutting the rates by 75 basis points in total over the past months, it looks as though we can expect the RBA to be on hold at 3.50%……………but I guess we’ll have to wait to find out next week……