RBA expected to hold on rates

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The Reserve Bank of Australia has been widely predicted to leave the official cash interest rate on hold at today’s board meeting.

The cash rate has sat at 2% since May 2015 and all 31 financial commentators and experts in the latest edition of Finder’s monthly RBA Survey have predicted it will remain unchanged after today’s meeting.

Shane Oliver, chief economist at AMP Capital said the central bank is unlikely to make a rate move before it gets a clearer picture of the overall economy.

“Recent Reserve Bank commentary suggests a degree of comfort with the current level for the cash rate and while it retains an easing bias not enough has changed to suggest it is about to act on it,” Dr Oliver said.

“It's basically in wait and see mode regarding the jobs market and the potential impact of global financial turmoil,” he said.