The Reserve Bank of Australia has never left interest rates on hold for this long, with the RBA chief, governor Philip Lowe being the lease active chief.
The decision to not change the record low of 1.5% marked the 18th consecutive meeting with the same outcome. The rate last changed 2 years ago right before Philip Lowe took over as governor and its stayed the same ever since. No other governor has spent this long in the job without changing the rate.
The last time rates have been left this long without change was 22 year ago between February 1995-1996, according to statistics from RateCity and back then the cash rate was 5x higher then todays.
“We’re penciling in November or December for an interest rate hike … but it’s still very much in pencil.We haven’t reached for the pen and written that firmly in the diary.” said Craig James Commsec chief economist.
According to Westpac’s chief economist Bill Evans says expect no change in the interest rates until well into 2019.
The following graph shows no movement in rates since August 2016.
According to the latest study produced by Bloomberg only 1 of 13 economists expect the hike to happen by the last quarter of this year. Only 4 including Westpac think it will happen through the first quarter of next year.
It will most certainly be interesting to see wether or not the interest rates change any time soon and if so what the next move for the economy will be.