The RBA has predictably kept the cash rate steady today, making it three months since the last bit of rate relief came for borrowers.
The decision not to move on rates was largely based on evidence that global economic conditions had continued to stabilise over the past month.While every economist in a Bloomberg News survey predicted the result, going forward it’s a trickier proposition.
HSBC chief economist Paul Bloxham says picking the direction of the next move is hard.
“We expect that global uncertainty will continue to limit local hiring which, combined with the high dollar, will see a further rise in unemployment and one more cut from the RBA in the second quarter.”
“But should further labour market weakness not eventuate, the loosening phase may be over.” Bloxham says in bad news for home loaners.
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