The RBA left rates unchanged at 1.5% which left mortgage holders heaving a collective sigh of relief, especially off the back of recent claims that rates could rise eight times in the next two years.
A former RBA board member John Edwards was behind the doomsday rate hike forecasts which were reported by news outlets in a frightful fashion.
But what he actually said was the time was coming for the RBA to “get back to normal” and the RBA would not move “too abruptly or unexpectedly”, reported news.com.au.
While he thought quarterly rate hikes could start in 2018 or even earlier, the actual RBA commentary this month suggested that rate hikes are not on the cards just yet.
This is the final paragraph in the RBA statement:
“Taking account of the available information, the Board judged that holding the stance of monetary policy unchanged at this meeting would be consistent with sustainable growth in the economy and achieving the inflation target over time.”
Translation? Business Insider says this means rates are unlikely to move in either direction anytime soon.
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