Economists have shifted their rate cut expectations to December this year, following a decision from the Reserve BAnk board to keep the cash rate on hold at its meeting yesterday.
The RBA said in a statement yesterday that higher than expected consumer price data as well as more positive news on the world economy combined to ease the necessity for further cutting rates.
There are also expectations that the economy will continue to benefit from earlier rate cuts.
“Over the past year, monetary policy has become more accommodative. Interest rates for borrowers have declined to be clearly below their medium-term averages and savers are facing increased incentives to look for assets with higher returns,” the statement from the RBA read.