Reins put on interest rates
Horses weren’t the only ones being reined this Melbourne Cup, with the RBA also deciding to hold interest rates.
The purse strings can get a bit loose on Melbourne Cup Day and the Reserve Bank of Australia (RBA) has moved interest rates on the last six Cup days – but not this year.
We’ve seen a 1% drop by the RBA over the last 12 months so for now, they will likely sit back and see what the effect really is on the market.
Consumer confidence is not responding as quickly as expected from these rate reductions, although in the last month there has been a pick up in the new home construction market.
If we were a betting company, we’d bet the RBA will hold interest rates for the rest of the year but just like Green Moon winning the Cup – sometimes it’s unpredictable.
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What do you think the RBA will do for the remainder of the year?