The Reserve Bank of Australia has failed to surprise or shock, leaving the cash rate on hold at 2% for another month.
According to the Board, a stable cash rate was the “best decision” for the economy.
In recent months, there has been no incentive for the RBA to change their current stance on monetary policy. Most of the recent economic data suggests the Australian economy is tracking along quite well and will continue to do so for the foreseeable future.
Property prices across the combined capital cities continue to rise slightly month on month, while unemployment, consumer and business sentiment have all remained relatively stable.
Data from CoreLogic found property values across the combined capital cities rose 0.2% over the month of March, taking prices 1.6% higher for the quarter.
Sydney, Perth and Darwin were the standout performers in terms of price growth, with values climbing by 1%, 1.2% and 2.1% respectively over the month of March.
Meanwhile, research conducted by the Australian Bureau of Statistics found the unemployment rate fell 0.2 points to 5.8%, which is a good sign for the broader economy.
The Westpac Melbourne Institute of Consumer Sentiment found confidence fell 2.2% in February. While this slight drop means the number of pessimists once again outweigh the number of optimists, confidence continues to hover around its long-term levels.
Finally, the National Australia Bank monthly business survey recorded a strong rebound in business conditions, which is incredibly promising and could be a sign of things to come.
Once you analyse all of the data points, it is clear that there is no trigger for a rate movement – either up or down.
Moving forward, it is likely that the cash rate will continue to sit at 2%.
Regardless of what happens with the cash rate in the future, the fact remains that interest rates are low, making now a good time for Australians to buy, invest or review their current loan.
For anyone who isn't happy with their current home loan provider or feel as though they could be getting a better deal, now is a great time to review your home loan and make sure you are still in the right product for your needs.