The Reserve Bank of Australia met today for its final meeting of 2014 and decided to keep the official cash rate on hold at 2.5 per cent. With its next meeting not scheduled until the first week of February next year, we can look forward to the cash rate remaining at this level throughout the holiday season.
Most analysts were expecting the cash rate to remain unchanged at today’s meeting, as the RBA’s current policy is to provide a ‘period of stability on interest rates’ in order to boost consumer confidence and stimulate our economy. Analysts are also expecting this stable interest rate environment to continue well into 2015.
After an exceptionally busy winter and spring selling season, activity in most of our property markets can be expected to slow considerably over the warmer summer months. Most capital cities are already showing a decline in the number of reported auctions. Melbourne and Sydney’s markets are still running hot, with over 2,400 auctions reported last week in these cities alone.
Meanwhile, with interest rates remaining at all-time lows, borrowers are enjoying a very competitive loan market and some great special offers. Whether you’re looking to buy your first home, invest or re-finance, now is a great time to consider your loan options. If you’ve had your current mortgage for a while, we recommend you talk to us about a home loan health check to see how your current mortgage compares to other offers available in the market. So please give us a call today!