The Reserve Bank today decided to hold interest rates at the historic low of 0.75%.
The decision to hold interest rates after the October cut was largely expected given a minimal improvement in unemployment and a minor uptick in inflation.
RBA governor Philip Lowe said “The low level of interest rates, recent tax cuts, ongoing spending on infrastructure, the upswing in housing prices in some markets and a brighter outlook for the resources sector should all support growth”.
Whilst the recent unemployment and inflation data, as well as a rebound in house prices (particularly in Sydney & Melbourne) has taken some of the pressure off the Reserve Bank to reduce borrowing costs, the Australian economy continues to grow below its long-term trend.
Having cut rates 3 times so far this year, it is considered that the RBA is likely to keep rates on hold until at least February 2020.
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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.