Global Macro Service > Data Insights > Australia

Cash rate on hold amid cooling property market

The RBA left the cash rate unchanged at 1.5% in today's Board meeting. Wages growth and price inflation have yet to budge despite the record-low policy rate, and with the economy still absorbing spare capacity in the labour market we expect it to take another 12-18 months before we see a rapid pick up in price pressures. Against this backdrop, we continue to expect the cash rate to stay at 1.5% until the last quarter of 2019, and there is some risk that lift off will be delayed into 2020 if wages growth fails to lift in the near term.

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