At its meeting today, the Board decided to leave the cash rate unchanged at 1.50 per cent.
Here’s part of the statement issued by Phillip Lowe
, Governor: Monetary Policy Decision.
Low interest rates have been supporting domestic demand and the lower exchange rate since 2013 has been helping the traded sector. Financial institutions are in a position to lend for worthwhile purposes. These factors are assisting the economy to make the necessary adjustments, though an appreciating exchange rate could complicate this.
Conditions in the housing market have strengthened overall, although they vary considerably around the country. In some markets, prices are rising briskly, while in others they are declining. Housing credit has picked up a little, although turnover of established dwellings is lower than it was a year ago. Supervisory measures have strengthened lending standards and some lenders are taking a more cautious attitude to lending in certain segments. Considerable supply of apartments is scheduled to come on stream over the next couple of years, particularly in the eastern capital cities. Growth in rents is the slowest for some decades.
You can find the RBA’s full statement here.
The RBA may have decided to leave rates as they are for now, but we’re seeing volatility in terms of what the lenders are doing.
Some have recently changed the interest rates on their fixed rate loans. Some have changed the interest rate on their investment loans, whilst others have changed the interest rate payable if you make Interest Only repayments.
If you have any questions with regards to your lender – or the interest rate you are currently paying – please give us a call.
