The prime minister, Scott Morrison, on a building site in Spreyton, Tasmania. The last time the Reserve Bank raised the cash rate was in November 2010.The prime minister, Scott Morrison, on a building site in Spreyton, Tasmania. The last time the Reserve Bank raised the cash rate was in November 2010.On Tuesday, when the board of the Reserve Bank kept the cash rate at 0.1%, it marked the 137th month without a rate rise.
It was also the last time the Reserve Bank raised the cash rate – from 4.50% to 4.75%. Since then, it has all been down. Tuesday’s announcement not to increase the rate ironically increased this expectation, mostly because the RBA governor’s statement left out one word – “patient”. Currency traders go through the governor’s statement looking for any changes that might – like this one does – have them thinking a rate rise is coming sooner than later.At the start of this year the market anticipated by the middle of next year the cash rate would be up to 1.25%; now it expects it to hit that by October and by August next year it will be all the way up to 3.25% – a level it has not been since 2012.