Macquarie Bank interest rate report [video]

The Reserve Bank Board met on Melbourne Cup day, Tuesday 3rd November, and kept official interest rates on hold at 2%.

Since last month’s meeting, key data continues to indicate the Australian economy is growing at a moderate pace.

Inflation at 1.5%

The most recent inflation rate reading of 1.5% shows demand in the economy is weaker than forecast.

The growing challenge, globally, of achieving preferred inflation outcomes could also now become an Australian problem.

Business and consumer confidence up

Modest improvements in both business and consumer confidence have been encouraging, however the consumer confidence survey has remained below 100 for 18 of the last 20 monthly readings, indicating a level of pessimism and inactivity.

Australian dollar predicted to fall

It is our view that the Australian dollar will go lower, closer to 63 US cents by April next year.

Weak commodity pricesdownload

Weak commodity prices impacting the national income and household income. Global demand for commodities remains soft as indicated by further rate cuts and stimulatory measures by the Chinese central bank.

Macquarie believes the RBA continues to assess the outlook and will cut interest rates over the coming months.

The next RBA board meeting will be held on Tuesday 1st December.

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Michael is a director of Metropole Property Strategists who create wealth for their clients through independent, unbiased property advice and advocacy. He's been voted Australia's leading property investment adviser and his opinions are regularly featured in the media. Visit

'Macquarie Bank interest rate report [video]' have 3 comments

  1. November 3, 2015 @ 8:09 pm Scott

    It’s a shame they can’t cut interest rates further for the good of the wider economy.

    All the speculators…oh I mean ” professional property investors” would love that now wouldn’t they!


    • November 3, 2015 @ 9:06 pm Michael Yardney

      Thanks for leaving your comment. In fact I would not be happy if rates dropped again – it would be a sign that our economy was worse that it is


      • November 4, 2015 @ 1:09 pm Scott

        I believe the RBA would love too, though it would only fan the “property investment” fire.

        The economy isn’t going that great if you haven’t noticed.

        The tax reforms are coming!


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