The Reserve Bank has left the official interest rates on hold at a record low rate of 1.5 per cent for a record 26th month in a row.
Economists and traders did not expected a move, with most expecting rates to remain unchanged until at least the second half 2019. When interest rates do next move, it is very likely to be up, according to 85& of the analysts surveyed.
However, that move is likely to be a long way off and when the rate rises comes they are likely to match the US Federal Reserve’s approach so far, which has been to very slowly edge monetary policy back to normal.
“The low level of interest rates is continuing to support the Australian economy,” concluded RBA governor Philip Lowe in his post-meeting statement.
Philip Lowe on Tuesday also called out weak household spending as a source of uncertainty for the economy a factor in the RBA board’s decision to leave the official interest rate at its current record low.
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By Wendy Chamberlain
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With a passion for all things real estate spanning over 20 years, Wendy loves that her role as a Buyers Agent and Sellers Advocate gives her buying and selling clients an experienced voice they can trust when it comes to negotiating to buy or sell something as important as their home or investment. Wendy considers it a privilege to be asked to help others realise such an important goal as home ownership and to be trusted with that honour. Get in touch today via www.wendychamberlain.com.au for a no obligation chat about how Wendy can work with you and help you save time and money to secure your new home sooner.