Cash rate to stay at record low of 2.00%
RBA adopts a ‘wait and see’ approach after last month’s rate cut.
With domestic economic growth below the long-term average, the Reserve Bank felt that leaving the cash rate unchanged
is the best course of action. This decision was highly influenced by a stronger-than-expected Australian Dollar
against major currencies, and a reduction in key commodity prices.
Governor Glenn Stevens of the RBA also released a statement highlighting the favourable credit environment at the moment:
“Low interest rates are acting to support borrowing and spending. Credit is recording moderate growth overall, with
stronger lending to businesses and growth in lending to the housing market broadly steady over recent months. Dwelling
prices continue to rise strongly in Sydney, though trends have been more varied in a number of other cities.”
So, what does all this mean for you? With rates predicted to rise later in 2015, now is the time to consider whether your
current loan is the right one for you, right now.