- The Reserve Bank has left its cash rate on hold at 1.5 per cent after inflation moved up to the central bank’s target level of 2-3 per cent for the first time since 2014.
Despite the effect an interest rate rise would have on cooling the housing market, the move to leave interest rates unchanged was unanimously predicted by economists, with few expecting a rate hike before mid-2018.
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RBA governor Philip Lowe is set to give a “household debt, housing prices and resilience” speech on Thursday as the debate over solving the affordability crisis continues. Photo: Bloomberg