Yesterday the Reserve Bank of Australia (RBA) board decided to leave the cash rate on hold, at 1.75%. This follows their 0.25% cut in May from a previous cash rate of 2.00%.
The RBA noted in their press release “having eased monetary policy at its May meeting, the Board judged that holding the stance of policy unchanged at this meeting would be consistent with sustainable growth in the economy and inflation returning to target over time.
In relation to housing, RBA said in it’s statement “dwelling prices have begun to rise again recently. But considerable supply of apartments is scheduled to come on stream over the next couple of years, particularly in the eastern capital cities”.
Co-founder of First Home Buyers Australia (FHBA) Taj Singh said “record low interest rates are a concern for those in the deposit savings phase. More needs to be done to support hard saving deposit savers across Australia”.
Fellow FHBA co-founder Daniel Cohen provided a caution warning to first home buyers in relation to the RBA announcement. “While the RBA has provided no indication of any upcoming rate rises, rates are currently at record lows. First home buyers buying now should factor in multiple ‘potential’ interest rate rises in their budget and borrowing capacity. This will mean if rates do eventually rise, you will be able to continue to afford mortgage repayments. A good mortgage broker can help you with these calculations” he said.
To see how home loan rates have changed since last month’s RBA cash rate cut decision you can view a large range of current offers on our home loan comparison page.
To find our what banks are currently offering in relation to savings interest rates you can view our high interest savings comparison page by clicking here, or compare current term deposit deals here.
To read the full RBA statement from yesterday’s board meeting please click here.