The Reserve Bank of Australia has kept the official cash rate on hold at 3.5% today at its September meeting saying, as a result of the sequence of earlier decisions, interest rates for borrowers are a little below their medium-term averages.
Its the third consecutive meeting with no adjustment.
“The impact of those changes is still working its way through the economy, but dwelling prices have firmed a little,” the bank said.
The last time the RBA adjusted its cash rate setting was in June, when it reduced the cash rate by 25 basis points from 3.75% to 3.5%.
In mid-August NAB changed its outlook on interest rates and is now the second lender forecasting interest rates to rise by mid-2013.
Before today’s meeting, Westpac chief economist Bill Evans said “additional interest rate relief will be required to ensure robust growth of the Australian economy during 2013”.
This article first appeared on LeadingCompany’s sister publication, Property Observer.