Despite some speculation about a Melbourne Cup Day surprise, the RBA Board today decided to leave the Official Cash Rate (OCR) unchanged at 1.50 per cent, according to the Housing Industry Association – the voice of Australia’s residential building industry.
“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 per cent. 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,” commented HIA Senior Economist, Shane Garrett.
“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,” Shane Garrett explained.
“With residential building set to start easing back in 2017, and business investment 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,” concluded Shane Garrett.
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