The Reserve Bank of Australia has decided to leave interest rates at present levels following their official meeting today. This decision keeps the cash rate unchanged at 2.50%. This decision was of no surprise, as it was predicted by all 33 economists surveyed by Bloomberg yesterday.
The RBA certainly has their work cut out for them at the moment – and subsequently has decided that right now that they will remain on the sidelines for another month – whilst they digest the copious amounts of data around the ‘pressure points’ of Australia’s economy. The combination of booming house prices (as high as 15% and 11% over the past 12 months in Melbourne real estate and Sydney real estate respectively), and the re-surging Australian dollar (now trading back above 92.30 cents) is compounded by the new rise in inflation being delivered from non-mining driven growth.
Interestingly, of the recognised economists surveyed, there is clear division on the RBA’s next move, being upward, downward or sideways… so we will all need to wait and see.
For Australian consumers, right now still represents a good time to benefit from a competitive home loan. There are some incredible interest rates currently being offered which provide opportunity to save on your home loan, so speak to a Rates Direct financial specialist today.
If you’re currently paying above 4.80% on your variable rate – you are paying too much!
From the team interested in saving you money at Rates Direct!
The Rates Direct™ Team