The Reserve Bank of Australia (RBA) left the cash rate unchanged at 1.5 per cent at the December meeting of its board, the last meeting for 2018.
This is the 26th consecutive time the bank has left the rate on hold, the lowest on record. This record period of inaction by the RBA has now extended beyond two years.
For many months, the RBA has said the next change in interest rates is likely an increase, albeit not for some time.
78% of experts still do believe the next change in rates, when it comes, will be up. But compared to the 88% of experts who thought the same thing when they were surveyed in September 2018, the certainty regarding an increase in interest rates has dropped.
In a speech to business economists on Thursday, not only did the bank’s deputy governor said further rate cuts were possible, but also that the RBA could engage in quantitative easing (known as QE). A similar situation occurred in the U.S.A, where the U.S. Federal Reserve cut rates to assist the recovery from the global financial crisis. The RBA has not ruled out implementing similar measures, if it felt it was required.
With the change in the Melbourne market in 2018, many people have become uncertain about buying or selling a home.
If you feel you need some further guidance, give me a call on 03 9686 2288 to discuss how I can help. I offer a free consultation, so why not call today?
By Wendy Chamberlain
Copyright 2018 | All Rights Reserved
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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.