RBA Leaves Cash Rate At 6.75%

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By Rudi Filapek-Vandyck

Even though (nearly) every economist and his pet maintains official interest rates in Australia are likely to go up still, virtually nobody believed the Reserve Bank would raise at its last meeting for the year this week.

And the RBA didn’t, leaving the cash rate at 6.75%.

The next meeting is in February and expectations are we are likely to see further tightening then.

Economists are divided whether the peak in Australian interest rates will be at 7% in this cycle or whether the RBA will push the cash rate beyond that next year. We are aware of only one major financial institution that doesn’t see any more rate hikes and that’s St George Bank.

St George Bank economists believe a significant slowing of the US economy will impact on the rest of the world and keep the RBA on hold from now on.

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