Borrowers hoping for an early Xmas present via an interest rate cut when the Reserve Bank of Australia board meet today are likely to be left disappointed.
Improving economic conditions will likely see the RBA keep the cash rate at 2%.
On November 24, RBA governor Glenn Stevens said, “I’m more than content to lower it if that actually helps but is that the best thing to do at any particular time?” in response to a question on the cash rate. “We’ve got Xmas. We should just chill out, come back and see what the data says.”.
So let’s follow his advice, chill out, enjoy Xmas and New Year with loved ones and see what the RBA do in February 2016!