March 06, 2018
The Reserve Bank of Australia has decided to leave the official cash rate on hold once again.
The decision marks the nineteenth consecutive month the Board has left the cash rate untouched at 1.50%.
“The Reserve Bank’s decision to leave the official cash rate on hold was widely anticipated,” Mortgage Choice chief executive officer John Flavell said.
“The Australian economy continues to perform well, giving the Reserve Bank of Australia little reason to adjust the current monetary policy setting,” he said.
“The National Australia Bank’s Business Survey found that business conditions across all major industry groups were solid over February which has led to an increase in business confidence.”
“Further, employment rates grew over 2017. In fact, according to the Australian Bureau of Statistics, the unemployment rate in January 2018 was 5.5%.”
“Meanwhile, Westpac’s Consumer Sentiment Index found that consumer sentiment fell throughout the month.”
“Data from CoreLogic found that national dwelling values slipped 0.1% over February, 0.8% lower than they were at their peak in September 2017”
“In addition, we have seen considerable volatility with respect to interest rates from Australia’s lenders.”
“When you consider all these factors, it is not surprising that the Reserve Bank of Australia decided to keep the cash rate on hold for yet another month,” Mr Flavell said.
“Looking ahead, the stability of global and domestic economies provide a strong case for eventual cash rate rises in the future.”
“As such, I would encourage borrowers to speak to their local mortgage broker to prepare for any upward rate adjustments,” he said.
“If a borrower has been in the same home loan product for a while now, they should review their options and ensure they’re in the right home loan for their needs now and into the future.”