Steady as she goes.
The RBA continues to hold the cash rate at 2 per cent.
Off the back of encouraging inflation signs, continued economic growth and the moderation of Australia’s property market, the Reserve Bank of Australia (RBA) has announced that the cash rate will remain at 2 per cent for at least one more month.
In the latest statement from Governor Glenn Stevens of the RBA, special mention was made of the favourable financial conditions for prime borrowers:
“Sentiment in financial markets has improved recently after a period of heightened volatility….Funding costs for high-quality borrowers remain very low and, globally, monetary policy remains remarkably 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.”
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.