RBA Rate Announcement | Cash rate remains on hold

Australia’s cash rate is staying at 2.00% for the third consecutive month

Despite the international economic turmoil currently going on, the Reserve Bank of Australia (RBA) has elected to leave the cash rate at the record low of 2.00%. The basis for the decision is a lower price in commodities than this time last year, in conjunction with a moderate growth projection for international markets. 

In the statement from Governor Glenn Stevens of the RBA, he made special mention of the rise in dwelling prices around the country, particularly Sydney: “Low interest rates are acting to support borrowing and spending. Credit is recording moderate growth overall, with stronger borrowing by 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. The Bank is working with other regulators to assess and contain risks that may arise from the housing market. ”

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.

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