Official interest rate is on hold

As expected, the Reserve Bank has left the official interest rate on hold at 1.5 percent.

The Reserve Bank of Australia in Sydney, (AAP Image/Dean Lewins) Source: AAP

Martin Lakos of Macquarie Wealth Management says the recently-released inflation figures were key to keeping rates at their current level this month.

He says rates could fall even further in 2017.

"The inflation data that was out last week at 1.7 percent probably kept those rates in check. We are expecting the Reserve Bank potentially to cut rates early next year in February and in May" said Martin Lakos.