Interest Rates: Gdp Figures and Rba Board

interest rates: One reason the latest GDP figures won t affect interest rates is timing, according to The Guardian. Last Tuesday, the RBA board met and decided to keep the cash rate on hold at its record low of 1.5%. The next day the GDP figures for the September quarter were released showing in seasonally adjusted terms the economy had gone backwards. And yet perhaps the Reserve Bank of Australia should react, given the national accounts point to a weakening in the housing market in all states except New South Wales. The RBA board does not meet in January, so the next time they meet will be 7 February, at which point the September GDP numbers will be referring to a period some four months previous. House prices have fallen but dont expect a housing affordability bonanza Greg Jericho Read more But while the likelihood is the RBA board will wait at least until March before acting, the September figures would certainly have piqued its interest, especially given they almost certainly render the RBA growth projection as too optimistic. The December quarter GDP figures will also be only three weeks away from being released. (news.financializer.com). As reported in the news.