Hard on the heels of Grand Final Weekend, the Reserve Bank of Australia (RBA) met for its October meeting today and decided to keep the official cash rate on hold at 1.50 per cent.
Today’s RBA decision is the first for new RBA Governor Dr Philip Lowe, following the retirement of Glenn Stevens in September who served us as RBA Governor for 10 years. Most analysts correctly predicted that Dr Lowe’s first RBA meeting as Governor would result in a hold after comments he made to the press regarding the lack of effectiveness of further rate cuts in stimulating growth.
A 25 basis point rate cut in August saw the official cash rate fall to all-time lows, however it did not have the effect of reducing the level of the Australian dollar against other currencies that the RBA intended. Whilst economic data around inflation, employment and GDP growth has been positive of late, a lower Australian dollar would be much more beneficial in stimulating a more productive economy.
With the official cash rate at unprecedented lows and interest rates more competitive than ever, conditions are great for Australian property buyers right now. Notwithstanding the distraction of Grand Final Weekend, Spring property markets are strong and there is good supply of housing stock for buyers to choose from.
Call us now if you want to get pre-approval for your home loan. If you already have a loan, ask us if you want to find a better rate or switch to a different loan product. Some banks have recently improved their offer on a range of different products – so ask us about your current needs today.