Reserve Bank of Australia keeps cash rate on hold at 1.5%.
December 5, 2016
This month’s Reserve Bank of Australia cash rate decision has just been announced; the last decision for this year in what has certainly been a jam packed 12 months. I’m pleased to share this update with you and the thoughts on why the Reserve Bank of Australia has made this call.
The RBA elected to adopt a wait and see approach over the Christmas and New Year period and has left the cash rate on hold at 1.5%. Between now and its next meeting in February, the Reserve Bank will weigh up a number of factors including the ‘Trump effect’ which some lenders are attributing to rising funding costs and consequently increasing fixed loan interest rates. Low inflation, slow economic growth, improving commodity prices, a stronger Australian dollar and ongoing concerns around some inner city property markets are among the other factors the RBA will need to take into account.
All of this makes for quite a confused picture which lenders will react to in different ways. Of course, one of the many benefits of having me as your mortgage broker onside is I’m very happy to speak to you at any time to ensure you still have the right financial solution for your current circumstances.