The Reserve Bank of Australia decided to once again leave the official cash rate unchanged at 1.5%, with the last rate move back in August 2016. Here are our thoughts on why the Reserve Bank of Australia has made this decision.
The economy appears delicately poised with slow wages growth, low inflation, a slowing housing market, tighter lending policies and high levels of household debt now leading some economists to believe that the next rate change could be down. Contrasting this, we have seen some lenders increase rates out of cycle, citing an increased cost of funds as the reason. Until the RBA sees a strong economic lead one way or the other it is highly likely to continue to leave rates as they are.
Rates remain constant now, but it is important that you are prepared if the next rate announcement is an increase. There may be different rates available from our wide panel of lenders and we’re always available to ensure you have the right financial solution for your current and future circumstances.
If you’d like to have a chat about what today’s news means for you and your finances, please don’t hesitate to get in touch.