Sluggish consumer confidence and subdued property price growth has encouraged the Reserve Bank of Australia to leave the official cash rate on hold.
At its Board meeting earlier today, the Board judged that it was prudent to leave the official cash rate on hold at 2.5 per cent for the 14th consecutive month.
According to the Westpac Melbourne Institute of Consumer Sentiment, confidence fell by 4.6 per cent in September.
This sudden and disappointing drop in confidence has ultimately forced the Reserve Bank of Australia to leave the official cash rate on hold at today’s Board meeting.
While the Reserve Bank has made it clear in recent weeks that something needs to be done to cool the property market, it is now unlikely that the Board will raise the cash rate anytime soon as this may further negatively impact consumer sentiment.