December 02, 2014
At its Board meeting earlier today, the Reserve Bank said poor consumer sentiment teamed with sluggish business confidence was enough to warrant leaving the cash rate on hold at 2.5 per cent.
Over the last month, we have seen a slight improvement in consumer confidence and business conditions.
According to National Australia Bank’s latest Monthly Business Survey, business conditions jumped in October, marking the largest monthly increase in the history of the survey.
But while business conditions were good, business confidence suffered a further fall in October suggesting firms remain uncertain over the near-term demand in their industry.
At the same time, the Melbourne Index of Consumer Sentiment rose by just 1.9% in November to 96.6, meaning pessimists continues to outweigh the number of optimists – a fact the Reserve Bank is acutely aware of.
So while some areas of the economy are improving, others are struggling and the Reserve Bank feels as though the best course of action is to leave rates on hold.
Moving forward, with rates still on hold and set to stay this way for the short term, now may be a great time for potential property buyers to jump onto the property ladder.
Alternatively, now may also be a good time for those with a mortgage to review their current home loan situation and see whether or not there is a better deal out there for their needs.
Australia’s lenders are competing aggressively for business at the moment, so if you haven’t refinanced or reviewed your mortgage in recent years, now may be a great time to do so.
For further information, and to put yourself in the best position with valuable information and guidance, contact a trusted consultant from Mortgage Choice on 07 3286 7711.