The RBA held its regular first Tuesday of the month meeting and, as expected, kept the official cash rate steady. The AMP’s chief economist, Shane Oliver said afterwards he still thought there was “a 50/50 chance of another rate cut” while Westpac’s Bill Evans said, “Westpac’s current view is that rates will remain on hold through both 2015 and 2016.” CBA’s view is it expects the official rate to remain at “2.00% over the forecast horizon.”
One notable statement to come from the RBA release was the observation by the RBA governor, Glenn Stephens, “Despite… China and Greece, long-term borrowing rates for most sovereigns and creditworthy private borrowers remain remarkably low.”
