Economists tipping RBA to leave cash rate unchanged: Bloomberg

The Reserve Bank will leave the cash rate on hold at 3% when it meets tomorrow, according to the overwhelming majority of economists polled by Bloomberg. Out of 28 economists surveyed, 24 expect the cash rate to remain unchanged in the first monetary policy meeting of the year. Looking beyond February, economists are divided on […]

Larry Schlesinger 03 February, 2013

The Reserve Bank will leave the cash rate on hold at 3% when it meets tomorrow, according to the overwhelming majority of economists polled by Bloomberg.

Out of 28 economists surveyed, 24 expect the cash rate to remain unchanged in the first monetary policy meeting of the year.

Looking beyond February, economists are divided on the cash rate outlook with just over half (15 out of 28) expecting rates to remain unchanged in March.

Beyond that the median forecast is for a cash rate of 2.75% in the second-half of the year, suggesting at least one more rate cut.

However, forecasts differ widely from 2% to 3.5% between now and year-end.

ANZ and Macquarie Bank tips a cash rate of 2% by year-end.

The Commonwealth tips a 3% cash rate by year-end, Westpac says 2.75% and NAB, 2.25%.

This article first appeared on Property Observer.