Before the Melbourne Cup race is run at 3pm tomorrow, the Reserve Bank Board will meet to discuss interest rates.
The RBA Rate Indicators show that the markets expect (with 94% consensus) that rates will remain on hold at 1.5%.
Highlights from the October Meeting
RBA Rate Decision: HOLD AT 1.5%
- In Australia, the economy is continuing to grow at a moderate rate.
- Inflation remains quite low.
The large decline in mining investment is being offset by growth in other areas, including residential construction, public demand and exports.
Household consumption has been growing at a reasonable pace, but appears to have slowed a little recently. Measures of household and business sentiment remain above average.
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Supervisory measures have strengthened lending standards in the housing market. Separately, a number of lenders are also taking a more cautious attitude to lending in certain segments.
Growth in lending for housing has slowed over the past year.
Turnover in the housing market has declined. The rate of increase in housing prices is lower than it was a year ago, although some markets have strengthened recently.
Considerable supply of apartments is scheduled to come on stream over the next couple of years, particularly in the eastern capital cities.
Growth in rents is the slowest for some decades.
(Comments by Phillip Lowe, RBA Govenor)
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