The Reserve Bank of Australia (RBA) has kept the cash rate unchanged at a record-low 1.50% for the 18th consecutive month, continuing the longest run of inaction in almost 22 years. Governor Philip Lowe had this to say in his official statement:
“Nationwide measures of housing prices are little changed over the past six months, with prices having recorded falls in some areas. In the eastern capital cities, a considerable additional supply of apartments is scheduled to come on stream over the next couple of years. To address the medium-term risks associated with high and rising household indebtedness, APRA introduced a number of supervisory measures. Tighter credit standards have also been helpful in containing the build-up of risk in household balance sheets.”
What does this mean for you? As the cash rate stands still at 1.50%, there have been a number of lenders including four of Australian’s biggest lenders who’ve changed their interest rates at their own discretion. Over the next few months make sure you keep an eye on any rate movement, and consider whether your current loan is still right for you.