Interest rate cut imminent

Amid a flurry of expectations of a rate cut sometime soon, the RBA has revealed its much-anticipated monthly verdict less than a fortnight out from the federal election.

The RBA has once again decided to keep rates on hold this month at the historic low of 1.5 per cent, where they have remained since a cut back in August 2016.

That was despite concerns about flat economic growth and subdued wages, as well as inflation currently sitting at just 1.3 per cent, well below the RBA’s target band of 2 to 3 per cent.

While most commentators and economists had expected rates to remain on hold until after next Saturday’s Federal Election, bets remain firmly on interest rates falling in the short term, as early as June.

We’ll keep you posted.

Rick Maggi