Earlier this afternoon, while everyone was preparing to watch the race that stops the nation, the Reserve Bank of Australia (RBA) board decided to leave the cash rate on hold, at a record low of just 1.50%.
The RBA noted in their press release that “over the next year, the economy is forecast to grow at close to its potential rate, before gradually strengthening. Inflation is expected to pick up gradually over the next two years”. This is slightly more positive / upbeat than more recent statements.
In relation to housing the RBA statement said “supervisory measures have strengthened lending standards and some lenders are taking a more cautious attitude to lending in certain segments. Turnover in the housing market and growth in lending for housing have slowed over the past year. The rate of increase in housing prices is also lower than it was a year ago, although prices in some markets have been rising briskly over the past few months. Considerable supply of apartments is scheduled to come on stream over the next couple of years, particularly in the eastern capital cities. Growth in rents is the slowest for some decades”.
In conclusion the RBA decided “taking account of the available information, and having eased monetary policy at its May and August meetings, the Board judged that holding the stance of policy unchanged at this meeting would be consistent with sustainable growth in the economy and achieving the inflation target over time”.
There is just one more RBA board meetings before Christmas.
I’m about to be in the market for a home loan
- If you are getting close to buying your first home why not check out our easy to use home loan comparison page to see how rates have changed since RBA’s rate cut back in August.
- Getting ultra close? We recommend you arrange an appointment with an FHBA Mortgage Broker who can discuss your circumstances, showcase home loan options you may be eligible for and discuss the differences between a fixed rate versus a variable rate. For more on FHBA Mortgages please click here.
I’m still saving for a home deposit
Since the August rate cut many banks have adjusted deposit product interest rates. To find out what banks are currently offering in relation to savings interest rates you can try our free & easy to use comparison pages:
I want to know more about the RBA decision
To read the full RBA statement from the board meeting please click here.
First Home Buyers Australia