RBA cash rate unchanged for May

The Reserve Bank of Australia has announced their decision to leave the official cash rate unchanged at 1.50 for the month of May.

Dwelling values have been virtually flat across our capitals in the previous month of April, signalling that perhaps the housing market may be moving through its peak rate of growth.

One chief economist has said that rates were likely to start rising in the second half of next year. “Continuing low underlying inflation pressure at a time of very high underemployment, record low wages growth and a still too high Australian dollar means that its way too early to be thinking about raising rates”.

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