Macquarie Bank October 2018 interest rate report – rates on hold at 1.5%

Although the RBA has in now kept the official cash rate on hold at 1.5% for 26 months, the drivers of this monthly decision have varied more recently.

Notably Australia’s economic growth data for the 2nd Quarter was released earlier in September and positively surprised with growth at 3.4%, the fastest since 2012. The production growth measure was much stronger and the household consumption growth was a solid 3% over the year after some upward revisions.

It remains Macquarie’s view that the RBA is unlikely to alter its interest rate policy settings until 2020.

Source: Macquarie Group Limited