The RBA’s monetary policy stance is consistent with its goal to achieve the inflation target as well as sustainable economic growth.
Despite the record low cash rate, homeowners should not grow too comfortable as a cash rate rise is likely around the corner.
The board’s decision follows a robust Australian economy, falling unemployment, solid business conditions and stable home loan demand.
NAB’s March monthly business survey showed that business conditions remain well above historic averages.
Westpac’s Consumer Sentiment Index reported levels typically associated with a robust consumer with optimists outnumbering pessimists in April.
Furthermore, the ABS’ March labour force survey showed a seasonally adjusted unemployment rate of 5.5%.
Tighter lending standards have also been helpful in minimizing the build-up of risk on household balance sheets.
If you are looking to buy your first home, or have been in a home loan product for some time, you should be encouraged by this data. Mortgage rates remain low by long-term standards and most lenders on the market are offering competitive pricing.
Speak to your local Mortgage Choice broker today to find out what your options are and ensure you’re making the right choices for your unique financial situation.