Cash Rate remains on hold!!

The Reserve Bank of Australia has announced the result of its monthly board meeting.

The central bank confirmed market predictions by leaving the official cash rate at a record-low 2.5 per cent for the 15th consecutive month.

All 33 experts surveyed by comparison website had forecast that the cash rate would remain on hold. Industry experts tip an increase in 2015.

Domain Group senior economist Andrew Wilson said the next move in rates would be a fall in the first quarter of 2015.

Dr Wilson said although the Reserve Bank still had to weigh up “mixed signals” in the economy, the negative signs now outweighed the positive.

“The Reserve Bank is waiting for crystallisation of the general economic climate – but house prices are now falling, inflation is low, unemployment and the dollar are still too high, the share market is weaker and there are rising concerns over the global economic outlook,” he said.