RBA Rates Decision – July 2009

The Reserve Bank has once again decided to keep the cash rate on hold this month.  The cash rate remains at 3%.  The overall consensus of the market is that the cash rate is still forecast to drop to a low of around 2.50% later this year, as it is anticipated that unemployment will rise later this year and into 2010.

The recent positive economic data on the economy has seen several forecasts regarding the cash rate, to increase from an anticipated bottom of 2.00% to a revised bottom of the cycle forecast at 2.50%.