Interest Rates On Hold
At its first meeting of 2019, the Reserve Bank Board kept official interest rates on hold at 1.5%, despite some commentators speculating that the RBA will cut interest rates this year.
The backdrop remains one of a mixed economic picture for Australia, but jobs growth is strong, and unemployment is likely to gradually decline towards 4.5% over the next few years. The recent inflation release of 1.8% remains slightly below the RBA’s preferred range of 2-3%, but not low enough to warrant an interest rate cut.
It is Macquarie Bank’s view that Australian interest rates will remain on hold at 1.5% throughout 2019 and into 2020.