Today the RBA left the official cash rate on hold at 2.00% at their March 2016 meeting.
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 said “continued low inflation would provide scope for easier policy, should that be appropriate to lend support to demand”.
FHBA co-founder Daniel Cohen said that the RBA was indicating that if economic conditions worsened, then they would be willing to low the cash rate even lower then 2.00%. However he added “I wouldn’t base my decision on what the RBA may or may not do in the future. Even if the RBA did cut rates later in the year, it’s not clear whether the Australian lenders would pass this onto customers”.
Recently many financial commentators have commented on the potential of some banks increasing interest rates independently of the RBA. We don’t want to speculate on this, but we will monitor this space and report to you any changes by medium to large lenders. You can also watch interest rate movements yourself online on our home loan comparison page, which is updated every weekday.
Read the full RBA statement here.
To find out what 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.