RBA makes September rate call

The RBA has left rates on hold at their historic low of 0.25 per cent.

“[The RBA] views the March monetary easing package as continuing to help the economy and the main action now being in fiscal policy,” said AMP Capital chief economist Shane Oliver.

“There is a significant chance it may cut the cash rate to 0.1 per cent and it may do more aggressive quantitative easing but that would not be for several months. And it remains ‘extraordinarily unlikely’ to cut the cash rate below zero. The next interest rate move of significance is likely to be a hike but with high unemployment and underemployment, lots of spare capacity in the economy and underlying inflation way below target this is at least three years away.”