Rate cut tipped for early in 2016

The Reserve Bank of Australia is tipped to leave the official cash rate on hold at today’s February board meeting. The RBA board will meet today to set interest rates for the first time in 2016. Unemployment is not rising while inflation has risen only slightly. House prices in Sydney and Melbourne have cooled significantly.

These factors will provide the RBA with an opportunity to cut rates in future months.

Source: The Adviser