HOMEOWNERS might be desperate for another rate cut, but here’s what the RBA delivered after yesterday’s board meeting.
Mortgage holders will have to wait a while longer for a second rate cut after the Reserve Bank of Australia left the official cash rate on hold at 4.10 per cent following Tuesday’s meeting of the monetary policy board.
In its statement on monetary policy, the RBA confirmed US President Donald Trump’s threat to expand his tariffs against Australia and its trading partners had weighed heavily in their decision.
“On the macroeconomic policy front, recent announcements from the United States on tariffs are having an impact on confidence globally and this would likely be amplified if the scope of tariffs widens, or other countries take retaliatory measures,” the board wrote.
“Geopolitical uncertainties are also pronounced.
“These developments are expected to have an adverse effect on global activity, particularly if households and firms delay expenditures pending greater clarity on the outlook.”
The board also cited fears of instability in Australia’s inflation rate.
“Inflation, however, could move in either direction,” the RBA board said.
“Many central banks have eased monetary policy since the start of the year, but they have become increasingly attentive to the evolving risks from recent global policy developments.”
The hold was widely expected, with money markets saying there was only about a 20 per cent chance of a cut in April.
Independent economist Saul Eslake said the RBA would weigh up quarterly jobs and inflation data, due out at the end of April, before deciding its next move.
