Rates set to stay low – or go even lower

The Reserve Bank of Australia has confirmed that official interest rates are set to stay on hold for the foreseeable future at the record low rate of 2.5 per cent because Australia’s economic outlook remains uncertain. 

Trading on interest rate futures shows a higher chance of more rate cuts to come after the unemployment rate jumped to a 12-year high in July.

The Reserve Bank has cut its growth and inflation forecasts, and wage growth stagnated.

Source: Bloomberg