The RBA’s decade without a rate rise is coming to an end – but the market’s expectations are absurd

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. Photograph: Sarah Rhodes/AAP

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.

And yet the markets still anticipate a rise in the coming months, but soaring house prices mean it is very unlikely that rates will rise as high as the market currently expects.