RBA December cash rate announcement: A gentle economic turning point
RBA December cash rate announcement: A gentle economic turning point For the second consecutive month the Reserve Bank of Australia (RBA) has decided to keep the cash rate on hold at 0.75%. The RBA appear to be following November’s narrow decision to maintain the current rate and make an assessment ‘once more evidence of the effects of the earlier monetary easing had become available,’ as per the RBA’s minutes. A billion-dollar question: Have the three rate cuts made a difference? The Reserve Bank’s three cash rate cuts are having measurable effects on the housing market, but consumer spending has not followed as intended. Each month Commonwealth Bank releases a report on Household Spending Intentions (HSI) index based on an analysis of transaction data and Google searches. Apart from home buying, the report covers approximately 55% of Australia’s total consumer spend across: retail, travel, education, entertainment, motor vehicles and, health and fitness. Commonw