The Reserve Bank of Australia made the decision today to leave the official cash rate on hold at 1.5%.
This is the eighth consecutive month that the cash rate has been kept on hold and this may be due to a number of economic factors.
Most specifically, consumer sentiment remains at stable levels, while business confidence is sitting above long-term averages, and property prices continue to rise across the combined capital cities.
According to the Westpac Melbourne Institute Index of Consumer Sentiment, confidence appears to be stabilising around the point where pessimists and optimists are around equal number.
In addition, research from National Australia Bank found business confidence and conditions fell slightly, but they remained above long-run averages.
CoreLogic data revealed that property prices across the combined capital cities rose 1.4% throughout March.
Hobart and Darwin were the standout performers, with both cities recording a 3.1% rise in property values over the month.
Sydney also enjoyed a strong performance, with property values rising 1.4% to $805,000.
In addition, a number of lenders have increased their fixed and variable rates, which would have given the Reserve Bank no immediate reason to change their current stance on monetary policy.
While the cash rate remains on hold for now, economists now believe a rate hike in the not-too-distant future is more likely than not.
If you have a mortgage, you should see your local broker to ensure you are in the best home loan product for your needs.
For those looking to buy, renovate or invest, now is an ideal time to act.
Mortgage Choice CEO talks RBA decision
Mortgage Choice CEO John Flavell offers insights into the RBA's decision to hold the cash rate - including what this means for borrowers and for the broader economy. Watch the video below.