Spring is here and the Reserve Bank of Australia (RBA) met for its September meeting today and decided to keep the official cash rate on hold at 1.5 per cent.
Today’s RBA decision follows a 25 basis point rate cut last month, which saw the official cash rate fall to all-time lows. The move prompted a flurry of home loan interest rate decreases from lenders during August, which is great news for home owners and those in the market for a property purchase during the busy Spring selling season.
The decision to leave the cash rate on hold today was widely predicted. Forecasters now anticipate the official cash rate will remain on hold whilst the RBA waits to see how last month’s cut will affect our inflation rate and if the US Federal Reserve will raise interest rates at their September meeting later this month.
Any rise in interest rates in the USA and other global markets will most likely assist the RBA’s efforts to manage the Australian dollar, possibly rendering further rate cuts unnecessary this year. A lower Australian dollar could help to stimulate our economy and also our inflation rate moving forward.
If you’re in the market to purchase a property this Spring, now is the time to get pre-approval on your loan. If you’re a home owner, last month’s rate cut means it’s also a great time to call us for a home loan health check to see if there may be a more competitive rate available for you. Give us a call today and we’ll help you secure the right loan for your needs.