As the silly season ramps up, the Reserve Bank of Australia announced today that it will keep the official cash rate on hold at 2.5%
This is the fourth consecutive month the RBA has elected to keep the cash rate on hold, which is good news for home owners and should help to further boost confidence in our property markets.
The high Australian dollar is one of the major contributing factors influencing the RBA’s decision to keep the official cash rate on hold. The economy is showing a slow response to the RBA’s fiscal policies and the dollar looks set to impact our tourism, export and commodities markets for some time.
Meanwhile, excellent auction clearance rates throughout the spring period indicate that the Australian property markets are starting to heat up in time for summer. We can expect further improvement in 2014 as interest rates will continue to remain low, at least until the RBA reviews the cash rate again during its next meeting on the first Tuesday in February.
Have you reviewed your home loan this year? With interest rates remaining low and the festive season just around the corner, now may be a good time to talk to us about what you want to achieve financially in 2014.
