The Reserve Bank of Australia (RBA) has elected to leave the cash rate on hold at the historical low of 1.50%. Governor Philip Lowe had this to say in his official statement:
“Lenders have recently announced increases in mortgage rates, particularly those paid by investors. Financial institutions remain in a good position to lend…Conditions in the housing market continue to vary considerably around the country. In some markets, conditions are strong and prices are rising briskly. In other markets, prices are declining. In the eastern capital cities, a considerable additional supply of apartments is scheduled to come on stream over the next couple of years. Growth in rents is the slowest for two decades.”
“Growth in household borrowing, largely to purchase housing, continues to outpace growth in household income. By reinforcing strong lending standards, the recently announced supervisory measures should help address the risks associated with high and rising levels of indebtedness.”
So, what does all this mean for you? Despite the recent cash rate hold there have been a number of lenders, including the Big 4, who have recently changed their interest rates at their own discretion. Keep a close eye on any rate movement, and consider whether your current loan is the right one for you, right now.