Potential and existing home loan borrowers will be cheering the Reserve Bank of Australia's decision to keep our cash rate steady at 4.5% for a third consecutive month. It hasn't remained stable for this length of time since the September quarter of last year.
It is likely the rate will sit at 4.5% until at least the next round of CPI data is released, on 27 October. This will be a great relief for anyone repaying a variable interest home loan or approaching the end of their fixed rate term, just as it will be for those who are planning to buy a home soon.
Overall, the RBA's decision on interest rates should improve consumer and business sentiment, which is great news for everyone. The residential property market is a significant contributor to GDP; its strength is important to the health of our economy.