Earlier this afternoon the Reserve Bank of Australia (RBA) board decided to leave the cash rate on hold, at a record low of just 1.50%. It was the first RBA board meeting with new Governor Philip Lowe in charge.
The RBA noted in their press release that “inflation remains quiet low” & so does wags growth. The RBA anticipates that inflation will continue to remain low for some time. They seemed happy that some economic growth in the country was occurring.
In relation to housing, RBA said in their statement “supervisory measures have strengthened lending standards in the housing market. Separately, a number of lenders are also taking a more cautious attitude to lending in certain segments. Growth in lending for housing has slowed over the past year. Turnover in the housing market has declined. The rate of increase in housing prices is lower than it was a year ago, although some markets have strengthened recently. 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”.
Some expert commentators this afternoon expressed that they were surprised the RBA didn’t have any more to say on housing given outgoing boss Glenn Stevens mentioned he would be uncomfortable if property prices continue to climb the way they have been in recent times.
There are just two more RBA board meetings before Christmas with the next one being held on Melbourne Cup day.
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 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.