Business

2 March, 2021

Cash Rates remain on hold

The RBA met today, leaving the cash rate at 0.10%, in line with their previous guidance that they expected rates to remain unchanged for some time.

The market has been speculating that rates may rise as early as late next year based on optimism around the vaccine rollout, surging iron ore prices, a strong housing market, a rebound in business investment and record government stimulus in the United States.

The Reserve Bank has previously stated that it did not expect rates to increase until 2024 and until inflation increases to within the bank's target range of 2-3% and wages growth is materially higher.

To support lower rates and protect exporters by pushing down the rising Australian dollar, the RBA has recently stepped up its government bond buying program.

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