The RBA continues to hold steady.
It comes as no surprise to many industry experts that the Reserve Bank of Australia (RBA) has left the cash rate at 2 per cent.
Having adopted a more observational strategy in the last 6 months, the RBA will wait and see whether there is any significant adjustment in either the domestic or international economies before deciding upon further movements in the monetary policy.
Governor Glenn Stevens of the RBA released his second statement of 2016, highlighting recent stabilisation in the usually ever changing credit and housing markets:
“Given these conditions, it is appropriate for monetary policy to be accommodative. Low interest rates are supporting demand, while supervisory measures are working to emphasise prudent lending standards and so to contain risks in the housing market. Credit growth to households continues at a moderate pace, albeit with a changed composition between investors and owner-occupiers. The pace of growth in dwelling prices has moderated in Melbourne and Sydney and has remained mostly subdued in other cities. The exchange rate has been adjusting to the evolving economic outlook.”
So, what does all this mean for you? With a possible change in interest rates just around the corner, now is the time to consider whether your current loan is the right one for you, right now.