RBA October Cash Rate Remains on Hold – Despite Expert Speculation
T he October official cash rate will remain on hold at 0.25% following the central bank’s board meeting earlier today. The decision marks the seventh consecutive month the Reserve Bank of Australia (RBA) has left the cash rate unchanged. The decision was despite talks of an October rate drop to 0.10%, which spiralled over September but ultimately bottomed out, the attention instead shifting to the prospect of a November cut. It is thought the RBA wanted to avoid making any policy changes until the government’s federal budget announcement, which is due to be handed down by Treasurer Josh Frydenberg tonight. While Commonwealth Bank had predicted rates to hold steady, NAB had predicted there would be a rate cut to 0.10% in either October or November - later updating its forecast to say November seemed most likely. Westpac initially predicted October would see a rate drop but in late September updated its forecast to say it would not be until the next board meeting on 3 November. &