Cash rate remains on hold for the fifth consecutive month.
It has come as no surprise that the Reserve Bank of Australia left the cash rate at 2.00% for another month. Whilst conditions have been easing in China, the US economy is showing strong signs of growth, keeping the global economy on track for moderate growth.
Australia’s economy is still operating with some spare capacity, with positive growth in employment. There is also good containment of domestic inflationary pressures and a lower exchange rate to encourage growth. Governor Glenn Stevens of the Reserve Bank, in his official statement, mentioned that the current housing market is still under control:
“…monetary policy needs to be accommodative. Low interest rates are acting to support borrowing and spending.
Credit is recording moderate growth overall, with growth in lending to the housing market broadly steady over recent months. Dwelling prices continue to rise strongly in Sydney and Melbourne, though trends have been more varied in a number of other cities. Regulatory measures are helping to contain risks that may arise from the housing market.”
So, what does all this mean for you? With rates remaining so low, now is the time to consider whether your current loan is the right one for you.
Call us today to get an no obligation free home loan assessment, 1300 559 084