Interest Rate Announcement – Friday 1st May 2018

By Rebecca Hay
The Reserve Bank has left official interest rates on hold in May for a 19th-consecutive meeting, deepening the record-breaking period without a rate movement.

The central bank opted to again leave the official cash rate on hold at 1.5 per cent, where it has sat since August 2016, and RBA governor Philip Lowe remains the longest-serving governor in RBA history to have not moved the cash rate.

When will the RBA hike?

The central bank board has continued to make it clear it expects the next interest rate move to be an increase, rather than a cut. Comments in the April meeting’s minutes included an explicit reference to that view.

But almost no consensus exists as to when that hike will arrive – Commonwealth Bank expects it later this year, UBS predicts late 2019, and AMP forecasts no move until 2020.


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