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RBA keeps rates on hold at 0.75%

03 Dec 2019

The RBA kept the official cash rate on hold at 0.75% at its latest meeting.

While the RBA’s final meeting for 2019 delivered no surprises in deciding to keep official rates on hold at 0.75%, 2019 was a year where domestic economic growth waned and inflation remained weak and despite stable unemployment consumer spending was also subdued impacting retail spending and car sales. 

Despite house prices starting to rebound residential construction remains soft, however building approvals have stabilised and non-residential construction rose strongly in the 3rd quarter.

Macquarie forecasts growth for Australia to gradually recover towards the end of 2020, however the RBA may cut again if the jobs market softens from here.