The Reserve Bank continued to hold the cash rate at 1.5 per cent at its July meeting today, as the inflation and unemployment rates remain low, counter-balanced by continued growth in the Eastern Seaboard housing market.
While the RBA has found that broad economic activity continues to be strong, it noted a warning that the retail sales and household income growth remain sluggish.
The bank appears to be more concerned this month about the break-out property price growth. A drop in rates might stimulate this sector further, which points to rates remaining low in the foreseeable future.
However, while the cash rate will remain flat, lenders have lifted their rates across a range of loan types, particularly interest-only loans, so it is imperative that existing borrowers ensure they have the right loan for their needs. Your Aussie Mortgage Broker can help you with a free appointment at a time that suits your needs.
As this will be my last commentary on Reserve Bank interest rates announcements, I would like to thank you for your readership. James Symond, CEO of Aussie, is pleased to take over from next month.