During the busiest time of year for property markets around the country, the Reserve Bank of Australia has decided to keep the official cash rate on hold at 2.0 per cent during its October meeting today.
Analysts were expecting the RBA to keep rates on hold at today’s meeting. Factors influencing the RBA’s decision to keep rates on hold include an easing of the Australian dollar, which has fallen by 14 US cents since the start of the year, and some volatility in global markets.
However a further drop in the Australian dollar would better support our export markets. Another rate cut could push the dollar down even further and help to drive tourism and employment growth, so many analysts are looking to see another rate cut before the end of the year.
The nation’s cash rate currently stands at a record low of just 2 per cent after the RBA slashed the rate by 25 basis points in both February and May this year. Now that property value growth in Sydney and Melbourne is starting to slow somewhat following APRA’s increased supervision of property investment borrowing, many analysts are speculating about a further cut of 25 basis points at the November meeting – we’ll have to wait and see!
There has been a recent drop to Owner Occupier home loan rates and we encourage you to get in touch now for a home loan health check if you haven’t done so in a while. We also have access to some of the market’s most competitive rates for property investment loans, so please do give us a call today.