The Reserve Bank of Australia has again decided to hold the interest rate at 2.5% for another month. This will be pleasant news to those Australians who are paying off their mortgage. In order to facilitate a period of stability to our economy, the RBA are applying their ‘neutral bias’ policy. It is a perfect time for Australian consumers to take advantage of the low interest rate and benefit from a competitive home loan.
Glenn Stevens, the Governor of Monetary Policy Decision, has stated that monetary policy remains accommodative. Interest rates are very low and for some borrowers it has decreased even more over the past few months. It is clear that the RBA is taking a “wait and see” approach, which is a reflection of the mixed economic news.
Unemployment rates have remained generally steady, although they are pretty high in some states.
Additionally, home building levels are on the decline, although the greater proportion of activity is with unit development, which has a longer term impact on housing supply imbalances and economic activity.
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