The Reserve Bank of Australia today decided to keep the official cash rate on hold. The Board decided that the cash rate will remain unchanged at 3.25%. This came after their decision to cut the rate by 25 basis points in October.
With poor performance in the mining industry, and the fall of commodity prices, there was a great deal of media speculation around a further rate cut. The rise in unemployment and the unstable state of overseas economies would also point towards a decision to cut the rate. However, it appears the central bank feels that the Australian economy can stave off these pressures without a reduced cash rate.
In the next few days we will find out if lenders will adjust rates as a result of today’s decision.
If you have questions about your current circumstances, or this most recent RBA announcement, please get in touch today. Lending institutions change their criteria all the time, so it’s always good to touch base.
