RBA to hold OCR: Economists
(6 October 2015 – Australia) According to 14 economists surveyed by AAP, most predict the Reserve Bank of Australia (RBA) will not announce rate cuts for the foreseeable future, including its decision today.
All those surveyed by AAP predict that the RBA will keep the overnight cash rate (OCR) at two percent at this month, with only three saying there will be another interest rate cut.
Of those surveyed six economists expect that the cash rate will be raised towards the end of 2016.
AAP also reported that ANZ Bank is predicting a quarter of a percentage point cut in February and another in May, which would take the cash rate down to 1.5 percent.
The bank cites several reasons for a reduction in the OCR, including easing economic growth, lower Australian dollar, slowing down of housing construction and the lower Australian dollar.
In contrast, Westpac chief economist Bill Evans is predicting no moves in the cash rate for the foreseeable future, adding that there has been an overreaction to uncertainty over the Chinese economy.
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