Despite some speculation about a Melbourne Cup Day surprise, the RBA Board decided to leave the Official Cash Rate (OCR) unchanged at 1.50%, according to the Housing Industry Association. Source: Timberbiz
“The majority view in the financial markets was for a ‘no change’ decision from the RBA, with only a low probability of an OCR cut to 1.25%.
Last week’s inflation figures came in a bit higher than expected, but the rate of price growth still remains well below the RBA’s target range,” HIA Senior Economist, Shane Garrett said.
“Residential building activity has been instrumental in boosting growth across the economy, with public infrastructure investment and increasingly exports also becoming important drivers of activity.
“With residential building set to start easing back in 2017, and business investment is still sluggish, it is crucial that policy reform proceeds with a sense of urgency in order to ensure that Australia’s economy meets its potential over the coming years.”
