RBA Sets New Record For Interest Rates

The decision to keep the official interest rate on hold marks the two year anniversary of the last change to the cash rate by the RBA; the longest period of interest rate stability on record.  The steady rate setting has a lot to do with stubbornly low inflation, record high household debt, a slack labour market and, more recently, falling dwelling values.  Financial markets continue to expect that the cash rate will remain unchanged until at least January 2020.  

While the cash rate has…