RBA expected to keep the cash rate on hold

KPMG Chief Economist Dr Brendan Rynne says the “expectation” is the RBA will keep the cash rate on hold despite rate cuts in the US. The US Federal Reserve cut interest rates for the first time in four years, prompting speculation about what the decision means for Australia. “The expectation though is that the Reserve Bank will still need to keep our current cash rate at 4.35 per cent,” Dr Rynne told Sky News Australia. “Until we start to see inflation rates drop to levels that enable the Reserve Bank to start to pull our cash rate back down.”