In its first meeting for 2014 following the Christmas and New Year break, the Reserve Bank of Australia has decided to keep the official cash rate on hold at 2.5 per cent. This decision is good news for home owners and investors, and should bolster the momentum of the property market following a busy spring auction season at the end of last year.
The RBA’s decision to keep the cash rate on hold for five consecutive meetings may have been influenced by the economy’s slow response to monetary policies put in place last August, when it reduced the official cash rate to its lowest levels since the 1950s. Of concern to the RBA is the high Australian dollar, which continues to impact our tourism, export and commodities markets.
Low interest rates are already stimulating our property markets, creating a positive outlook for home owners and purchasers. Low interest rates and competitive fixed rates are a feature for those looking to refinance, invest or apply for their first home loan. For more information about how these low interest rates could benefit you and your financial situation in 2014, please contact the team at Aqua Financial Services.