With auction clearance rates at their highest levels in years, the Reserve Bank of Australia has decided to keep the official cash rate on hold at 2.5%. This news should help to keep interest rates low and support the continuing trend toward a more confident property market.
Several economic factors could be influencing the RBA’s decision to keep the cash rate on hold at its current low level. These include:
- the high Australian dollar impacting export markets,
- falling commodity prices and
- unemployment growth.
Meanwhile, home buyers are clearly enjoying the current lower interest rates, with housing prices Australia-wide indicating a recovery and loads of options available to those in the market for a home or investment loan.
To find out how continuing low interest rates may impact your financial situation, please contact us.
