Cash rate remains at historic low
The Reserve Bank of Australia has elected to keep the cash rate at its current level, leaving the door open for further rate cuts later in the year, if necessary.
Governor Glenn Stevens of the RBA had this to say in his official statement:
“Low interest rates have been supporting domestic demand and the lower exchange rate overall is helping the traded sector. Over the past year, growth in credit to businesses has picked up, even as that to households has moderated a little. These factors are all assisting the economy to make the necessary economic adjustments, though an appreciating exchange rate could complicate this.”
“Indications are that the effects of supervisory measures have strengthened lending standards in the housing market. Separately, a number of lenders are also taking a more cautious attitude to lending in certain segments. Dwelling prices have begun to rise again recently. But considerable supply of apartments is scheduled to come on stream over the next couple of years, particularly in the eastern capital cities.”
So, what does all this mean for you? Despite the cash rate remaining steady, lenders may choose to move independently to the Reserve Bank’s decision. Now is the time to consider whether your current loan is the right one for you, right now.