RBA leaves cash rate at 2.25%
The cash rate has remained on hold at 2.25% however, the RBA speculates that another rate cut is on the way.
Both moderate global economic growth and a below-trend pace of domestic growth are the key reasons for the RBA board deciding to leave the cash rate at 2.25% today.
However, in the official statement released on behalf of RBA Governor Glenn Stevens, it was mentioned that a further rate cut is still a possibility should there be any further decline in the current levels economic activity.
One key area that remains steady is Australia’s housing market. As the RBA announcement states: “Growth in lending to investors in housing assets is stronger than to owner-occupiers, though neither appears to be picking up further at present. Lending to businesses, on the other hand, has been strengthening recently.”
So, what can we expect in the coming months? Despite the ‘wait-and-see’ approach taken by the RBA, many economists are predicting a rate cut before July. This is good news for any borrower out there looking to invest, buy their first home or simply refinance, as this is the ideal time to take advantage of the lowest rates in Australia’s history.