The Reserve Bank of Australia (RBA) left the official cash interest rate on hold at 1% when the board met on Tuesday while leaving the door open for further cuts.
The RBA noted “further signs of a turnaround in established housing markets, especially in Sydney and Melbourne” as part of its positive outlook, but noted that new dwelling activity had weakened and growth in housing credit remains low.
“Demand for credit by investors continues to be subdued and credit conditions, especially for small and medium-sized businesses, remain tight. Mortgage rates are at record lows and there is strong competition for borrowers of high credit quality,” the central bank’s statement noted.
Some analysts are now expecting the RBA to cut rates again when it meets next month, with ANZ senior economist David Plank among those predicting the official cash rate will fall to 0.25% in the first half of next year.
Meanwhile, the bank released this handy infographic offering a snapshot of the Australian economy, which we thought we’d share with you just in case you want to pop the numbers into your next pitch deck.
We might take some issue with that rising arrow on GDP growth, which shrunk to 1.4% over the June quarter, in line with expectations, and now the slowest growth rate since the GFC, but it’s still pretty cool.