Dr Shane Oliver, Head of Investment Strategy and Chief Economist takes a look at the outlook for official interest rates in Australia following the RBA’s latest monthly board meeting.
The key points are as follows:
The RBA left the cash rate at 0.1% at its April meeting.
While the economy is recovering faster than expected the conditions for a rate hike – actual inflation sustainably in the 2-3% target zone and wages growth well above 3% – are unlikely to be met for several years.
The RBA will likely start to slow its quantitative easing measures through this year though.
If you would like to discuss any of the issues raised by Dr Oliver, please call on 1300 181 707 or email email@example.com.