An improvement in consumer sentiment combined with a robust property market, has encouraged the Reserve Bank of Australia to leave the official cash rate on hold.
At its September Board meeting, the Reserve Bank said it made sense to take a ‘wait and see’ approach to rates this month.
It is clear the Reserve Bank is keen to see how last month’s rate cut plays out in the marketplace before making any further adjustments. Ultimately, the latest economic data has provided the Reserve Bank with no reason to alter the cash rate.
Data from the latest Westpac Melbourne Consumer Sentiment Index found confidence was up 2% to 101.0 throughout August. While this jump in sentiment can more than likely be attributed to last month’s rate cut, it means optimists once again outnumber pessimists.
And it is not just consumer sentiment that has improved over the last month, with data from National Australia Bank’s latest Business Survey showing business conditions and sentiment remain at elevated levels.
Furthermore, the property market continues to go from strength to strength, with prices rising across most capital cities over the last 12 months. Moving forward, I would expect to see even more heat in the property market as buyers and sellers come out of their winter hibernation.
The spring selling season is notoriously hot in Australia, and I expect this one to be no different.
For those thinking of buying property in the not-too-distant future, now is a great time to get onto the property ladder. For those with a mortgage who haven’t reviewed their interest rate in several years, now is also the perfect time to get a home loan health check to ensure you are still in the right product for your needs.
If you are in the market for a home loan, please call Ashley now on 0425 826 967 or 9432-2121