The RBA has decided to leave the official cash rate unchanged at 0.75% as it assesses the impact of its June, July and October cuts.
In making this decision not to drop rates again, the RBA will have considered strong evidence of an improving housing market, supported by rising house prices in most capital cities and particularly in Sydney and Melbourne.
In making the decision to hold rates, the RBA will be keeping a close look on household consumption following lower than expected retails sales in September.
The three previous rate reductions, along with tax cuts, have failed to restore inflation to within its target range of 2 – 3% pa.
Lenders continue to review rates independently of the RBA with only some making reductions. It is therefore always important to review your lending options regularly to ensure they remain the most suitable for your situation.
Please contact us if you have any questions about what this means for you and your finances.