The Reserve Bank of Australia today left the current official cash interest rate unchanged at its historic low level of 0.75 percent. The rate has been kept on hold since its last point cut in October. The decision was also expected by analysts or traders although they are anticipating another cut soon by March or April.
In his monetary policy statement earlier, RBA Governor Philip Lowe noted that the bank will be focusing on employment figures to decide on a possible rate cut. He added that an extended period of low interest rates will be needed to achieve full employment and the inflation goal within the 2-3 percent target range. The latest ABS data showed a slight decline in unemployment and a slight increase in inflation.
Lowe also cited the effects of the low interest rates saying “Lower interest rates have assisted with the process of household balance sheet adjustment. They have also boosted asset prices, which in time should lead to increased spending, including on residential construction. Progress is expected towards the inflation target and towards full employment, but that progress is expected to remain gradual.”
Currently, more than 30 lenders have lowered their variable mortgage rates below three percent. This covers fixed mortgages with a five-year term.
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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.