The Reserve Bank of Australia met today for its monthly board meeting and decided to keep the official cash rate on hold at 2.25 per cent. Many market analysts were predicting a rate cut today, but the RBA has decided to maintain the status quo for another month.
The RBA cut rates in February for the first time in 18 months, bringing interest rates to new historic lows. Despite the unusually low rates, analysts were touting a 70 per cent chance of another rate cut today, and now many are saying that another cut to 2 per cent is on the cards before the middle of the year.
Economic factors that are influencing the RBA to keep interest rates low include rising unemployment figures, flagging business confidence and the need to rebalance the economy to account for declines in the mining sector.
After today’s decision, we’ll wait and see what the RBA decides to do at its monthly meeting in May. However, interest rates are already very low and this has had a very stimulating effect since the start of the autumn selling season across the country.
With the prospect of even lower interest rates on the horizon, we can expect this property market activity to continue throughout autumn and winter. If you’re in the market to buy your first home, invest or even refinance, there are some very competitive home loans and great special offers available from lenders. Get in touch and we’ll help you get the right deal for you!