Cash rate on hold at historic low of 1.5%
Great news from the Reserve Bank of Australia (RBA) – the official cash rate remains on hold at its historic low of 1.5%.
This is the first interest rate decision by the RBA since last December, and it means homeowners can once again breathe a sigh of relief.
The stable cash rate is especially important at a time when many Australians are recovering from festive season spending while also juggling back to school costs.
Why have rates stayed on hold?
We’re seeing a record run of cash rate stability. The cash rate has remained unchanged since August 2016 – the longest stretch of stable rates in almost 30 years.
The decision to keep the cash rate on hold reflects the RBA’s aim of sustaining a healthy Australian economy.
On one hand, inflation is lower than the RBA would like, and both Sydney and Melbourne are still experiencing soft property markets. On the flipside, the job market is very buoyant, with the unemployment rate of 5% being the lowest in six years.
Overall, the outlook is good for our economy, and the RBA is keen to maintain this through stable interest rates.
What to watch for
Highlighting what an interesting year 2019 is shaping up to be, two banks – NAB and ING, recently announced independent hikes in their home loan rates.
At the same time, some economists are predicting that the RBA could cut the official cash rate in 2019.
In these uncertain times, expert advice can provide valuable peace of mind.
Talking to your Aussie Broker can help to clear many of the ‘what ifs’ that you may be concerned about right now.
A chat with your Aussie Broker is an opportunity to gain a clear idea of what’s happening in your local mortgage market, and to know if your home loan is still the ideal match for your needs and lifestyle. It may be that your life has moved on while your mortgage is still stuck in 2018.