Cash rate on hold

AUSTRALIA’S central bank has signalled the next move in interest rates will likely be up, but it is unlikely to happen for some time, analysts say.

Weak household spending and inflation will continue to stay the Reserve Bank’s hand for months to come, according to economists. Yesterday, the RBA board decided to leave the cash rate at 1.5 per cent — the all-time low where it has now sat for 18 months.

Governor Philip Lowe said business conditions were positive and increased public infrastructure spending was supporting the economy, but the outlook for household consumption remained uncertain.