The Reserve Bank of Australia has left interest rates on hold at 2.5 per cent at its May board meeting held today (6 May 2014).
REINSW President Malcolm Gunning said the decision was largely expected.
“We are not surprised by the RBA’s choice to leave interest rates in a holding pattern. All eyes are now on the federal budget, which could have wide implications for Australians and the future direction of interest rates.
“While the housing market remains firm, we watch with interest the delivery of the budget, the high Australian dollar and rising unemployment levels which could negatively influence consumer confidence,” Mr Gunning said.
The official cash rate has fallen 225 basis points since November 2011, with the RBA cutting interest rates twice in 2013 in May and August. Interest rates have remained unchanged in 2014.
The RBA will next meet on Tuesday, 3 June 2014.