Australian Interest Rates

Please click on the link below to view Shane Oliver's view on Australian interest rates.

Key points raised are:

  • The RBA has left interest rates on hold for 21 months.
  • A rate raise is now unlikely until 2020 as
    • growth is likely to remain weaker than the RBA expects
    • wages growth and inflation are likely to remain low for longer
    • bank lending standards are tightening further and
    • housing prices in Sydney and Melbourne are falling with more downside ahead.
  • For investors 
    • bank deposits will continue to offer poor returns
    • Australian bonds offer better returns relative to global bonds
    • Be wary of the Australian dollar