Today the RBA left the official cash rate on hold at 2.00% during their April board meeting in Hobart.
The RBA noted in their press release “the Board judged that there were reasonable prospects for continued growth in the economy, with inflation close to target. The Board therefore decided that the current setting of monetary policy remained appropriate”.
The RBA pointed out that inflation is low throughout their press release and ended with “continued low inflation would provide scope for easier policy, should that be appropriate to lend support to demand”.
Co-founder of First Home Buyers Australia Taj Singh said that while the RBA is concerned about the appreciating $AUD, they are clearly looking at the bigger picture. “The RBA will have to juggle the usual economic indicators with an early Budget that’s been kept under wraps & an upcoming federal election at an unknown date”.
Fellow FHBA co-founder Daniel Cohen said while there is a lot of uncertainty around where interest rates are heading, first home buyers should remember that current rates are at record lows. “First home buyers buying now should factor in multiple potential interest rate rises in their budget & borrowing capacity. A good mortgage broker can help you with these calculations” he said.
You can read the full RBA statement from today’s board meeting here.
To find out what home loan rates banks are currently offering please see our home loan comparison page.
To compare more options and obtain a loan pre-approval, you should speak to a mortgage broker.
