RBA’s first rate decision since the Morrison 2017 Budget
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% (yet again). It was the RBA’s first board meeting since last month’s federal budget was handed down by Treasurer Scott Morrison.
RBA Governor Philip Lowe noted the following in the official media statement:
- Employment: “Employment growth has been strong over recent months, although growth in total hours worked remains weak. Wage growth remains low and this is likely to continue for a while yet”.
- Economy: “The transition to lower levels of mining investment following the mining investment boom is almost complete. Business conditions have improved and capacity utilisation has increased. Business investment has picked up those parts of the country not directly affected by the decline in mining investment. Year-ended GDP growth is expected to have slowed in the March quarter. Looking forward, economic growth is still expected to increase gradually and this is expected to continue as economic growth improves”.
In relation to housing, the RBA comments were similar to last month’s statement. Today’s media statement read “conditions in the housing market vary considerably around the country. Prices have been rising briskly in some markets, although there are some signs that these conditions are starting to ease. In other markets, prices are declining. In the eastern capital cities, a considerable additional supply of apartments is scheduled to come on stream over the next couple of years. Rent increases are the slowest for two decades. Growth in housing debt has outpaced the slow growth in household incomes. The recent supervisory measures should help address the risks associated with high and rising levels of indebtedness. Lenders have also announced increases in mortgage rates, particularly those paid by investors and on interest-only loans”.
The next RBA board meeting will be on Tuesday the 4th of July.
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 this easy to use home loan comparison table to see a range of rates currently on offer.
- Getting ultra close? We recommend you arrange an appointment with an FHBA Lending Adviser who can discuss your circumstances, showcase home loan options you may be eligible for and go through the home loan process with you. For more on FHBA Mortgages please click here.
I’m still saving for a home deposit
Unfortunately the rate of interest on savings accounts are low at the moment (compared to more recent historical times). But when saving for a home deposit, every bit counts. See if you can give your savings a boost by checking out these free & easy to use saving accounts comparison tables!
I want to know more about the RBA decision
To read the full RBA statement from the June board meeting please click here.
Did you know?
Did you know that you can protect yourself from a rate rise as a mortgage borrower? A fixed home loan allows you to lock in an interest rate for a period of time, such as 5 years. This gives borrowers certainty around home loan repayments. So how do you choose whether to get a fixed home loan or the more common variable home loan? Click here to learn more about your home loan options
First Home Buyers Australia