Finder makes money from featured partners, but editorial opinions are our own.

RBA starts 2017 with February cash rate hold

February RBA 2017 feature image

The Reserve Bank has stayed the course it charted in the latter half of 2016, leaving rates on hold.

At its meeting today, the first of 2017, the RBA board chose to leave the official cash rate on hold at 1.50%. The move was widely anticipated by economists. One hundred per cent of the experts surveyed in the Monthly RBA Survey predicted the Reserve Bank would leave the cash rate unchanged.

CoreLogic research head Tim Lawless said a booming housing market would make the RBA reticent to lower rates.

“With inflation consistently tracking below the RBA’s target range for almost three years, it’s likely that the heat in the housing market is one of the primary reasons why the cash rate hasn’t moved lower in an attempt to stimulate spending and push inflation higher. CoreLogic reported capital city dwelling values were 10.7% higher over the past 12 months, which is a substantially higher growth rate than the 7.4% recorded over the same period a year ago,” Kusher said.

While the Reserve Bank remained on the sidelines this month, there is a growing contingent of experts who believe the RBA’s next move will be upward. Fifty-eight per cent of the experts surveyed by believe the cash rate has hit its lowest point of the cycle.

Compare today's home loan interest rates

Latest home loans headlines

Get more from Finder

Ask an Expert

You are about to post a question on

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms of Use, Disclaimer & Privacy Policy and 6. Finder Group Privacy & Cookies Policy.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Go to site