Oliver's insights

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04 April 2017

Australian cash rate on hold – bank mortgage rates, home prices and implications for investors
Key points - The RBA has left interest rates on hold. The arguments to cut or hike rates are evenly balanced and we can't see an official rate hike until second half 2018. - For the RBA to hike rates just to slow the Sydney and Melbourne property markets at a time of softness elsewhere would be madness. - But various threats to the hot Sydney and Melbourne markets are growing and point to slowing price gains. - For investors: bank term deposits offer poor returns; remain wary of the $A; and shares, commercial property and infrastructure continue to offer attractive yields. IntroductionThe RBA provided no surprises following its April board meeting leaving the official cash rate on hold a
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About Oliver's Insights

Oliver's Insights is a regular update from Dr Shane Oliver, Head of Investment Strategy and Chief Economist, AMP Capital.

In Oliver's Insights, Dr Shane Oliver explores the latest issues regarding financial markets and the economy.


Who is Dr Shane Oliver?

Dr Shane Oliver joined AMP in 1984 as a research officer and in 1994 became AMP's Chief Economist. He now plays a major role in determining AMP Capital's investment strategy and asset allocation. He also provides economic forecasts and analysis to the asset class portfolio managers. As chief economist, he maintains a media profile for AMP Capital on economic and investment market issues.


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