ANALYSIS

The RBA left the cash rate on hold as expected today.

It had no choice. A cut would have been very out of character for the central bank, because its two favourite moves are a hold and a hike, followed by daylight in third and then a reduction. A hike would not have been a surprise.

In fact, murmurs are growing louder that a cash rate rise will be the next RBA move. It could happen before Christmas, or in February, as Aussies are recovering from peak spending season.

As the RBA keeps telling us, its job is to keep inflation under control. And if the September quarter CPI surge turns out to be a trend, rather than a one-off, the cash rate will be hiked again.

Inflation is another dilemma in a crowded field of problems for Australia’s property market, which, if we’re fair dinku

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