At its annual Melbourne Cup Day board meeting today, the Reserve Bank of Australia (RBA) announced it would keep the official cash rate on hold at 1.50 per cent for November.
According to comments made by RBA Governor Dr Philip Lowe last month, today’s decision was largely based on 3rd quarter CPI inflation data*. This data has showed a slight improvement since June, indicating to the RBA there was no need to move on rates today.
However, analysts are undecided about what the RBA’s next move might be. A rise in the Aussie dollar following the release of the inflation data has prompted some speculation the RBA may need to cut rates again in 2016 to keep it in check. The RBA will only meet one more time in 2016, so it will be interesting to see what happens with the Aussie dollar prior to their last meeting for the year in December.
Meanwhile, the spring property season is going strong in most markets around the country. There is a great range of housing stock available to those looking for their dream home and borrowers are enjoying excellent home loan interest rates. There are many competitive deals available for first home buyers, next home buyers, refinancers and property investors so it really is a good time to talk to us about your property purchasing plans.
Call us now and we’ll help you make sure you’re getting the right loan for your needs with a competitive rate from one of Australia’s leading lenders. And if you had a flutter on the Melbourne Cup today, we hope you backed a winner!