What are the odds of an RBA rate cut in October?
The smart money is on an uneventful outcome at Philip Lowe’s first RBA announcement as the new Governor later today, with rates widely expected to hold steady for the month.
Rates were kept on hold last month, in Glenn Steven’s last announcement as Governor. In his statement, he cited “accommodative” global monetary policy and low funding costs for high-quality borrowers among the reasons why.
He added that low interest rates were supporting domestic demand and financial institutions were in a good position to lend.
So for Aussies considering borrowing money, for example, potential homeowners, now may be the time to start researching and comparing your home loan options.
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The Board also recognised that inflation was quite low, but that “subdued growth in labour costs and very low cost pressures elsewhere in the world” pointed to this being the case for some time yet.
This month appears to be much of the same, with no great upheavals to the Aussie economy to prompt the Reserve Bank into shifting rates.
Experts say it’s much more likely that the Reserve Bank will opt to move rates in November, as has been predicted for some time now. New data on inflation will come out in late October, so the RBA will be in a position to use its November meeting to adjust interest rates in order to hit the 2-3% inflation goal.
Keep an eye on our Reserve Bank page to see what happens and what it will mean for your home loan and savings.
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