Rates to hold in July, as RBA continues its wait-and-see approach


Laine Gordon

Laine Gordon

Jul 4, 2016( 2 min read )

article image

July 4, 2016: The cash rate is expected to remain on hold at 1.75 per cent when the Reserve Bank board meets for its July review tomorrow, despite growing pressure for a second rate cut this year.

A RateCity.com.au analysis of over 30 key economic indicators suggests that the RBA will continue its wait-and-see approach with the Federal Election results still up in the air and the fallout from the Brexit yet to filter through properly.

Peter Arnold, data insights director at RateCity.com.au, said the RBA is unlikely to jump in without seeing how it all plays out.

“With the election still too close to call, the RBA will want to see how the nation and the government settle in before making a move,” he said.

“While the dust settles on last month’s unexpected Brexit vote, leaving the world economy in tatters, the RBA is unlikely to act without seeing the full implications.”

However, mortgage holders shouldn’t be disappointed if the cash rate remains steady in July, as the banks have been taking matters into their own hands in recent weeks, Arnold added.

“Almost 180 fixed home loan rates were slashed in the last month, suggesting that there is at least one more rate cut to come this year, but the RBA is likely to hold it for another day,” he said.

Please feel free to use the below infographic. For commentary please get in touch.

rateulator-july

^Words such as "top", "best", "cheapest" or "lowest" are not a recommendation or rating of products. This page compares a range of products from selected providers and not all products or providers are included in the comparison. There is no such thing as a 'one- size-fits-all' financial product. The best loan, credit card, superannuation account or bank account for you might not be the best choice for someone else. Before selecting any financial product you should read the fine print carefully, including the product disclosure statement, fact sheet or terms and conditions document and obtain professional financial advice on whether a product is right for you and your finances.

Compare your product with the big 4 banks, or add more products to compare
As seen on