The Reserve Bank has used its last board meeting of 2024 to keep interest rates steady as economists, and home buyers, look for relief early next year.
There will be no Christmas cheer for the nation’s army of mortgage holders after the Reserve Bank board used its final meeting of the year to keep official interest rates steady.
Following its two-day meeting, which featured a protest from the ACTU over the impact of rate settings on the nation’s workers, the board said the official cash rate would enter the new year at 4.35 per cent., put the chance of a rate cut at the RBA’s meeting in February at more than 60 per cent. Markets have fully priced in a rate cut by the bank’s April meeting.
Ahead of the decision, the closely watched National Australia Bank business survey for November revealed a sharp fall in business conditions and confidence, which are now at Covid-pandemic levels. Business conditions dropped by 5 points, with profitability and employment both lower. Confidence slipped by 8 points and is now in negative territory, with the retail sector – struggling due to low consumer spending – the weakest part of the economy.NAB chief economist Alan Oster said conditions in the goods sector remained weak while there were more positive signs in services such as recreation and culture, finance and property services.
He said forward orders edged down another 2 points in November, with the mining, retail and wholesale industries all struggling.is the economics writer at The Sydney Morning Herald and The Age, based in Canberra. She was formerly the banking writer based in Sydney.
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