July 2014 Cash Rate Decision

The Reserve Bank of Australia has played it safe again this month, with the Board opting to leave the official cash rate on hold at 2.5 per cent for the 11th consecutive month.

The RBA’s decision would likely be based on the fact that consumer sentiment remains fairly sluggish and property values were fairly stagnate in June.

According to the latest Westpac Melbourne Institute of Consumer Sentiment, confidence climbed just 0.2 per cent in June. Overall, consumer sentiment remains 6.6 per cent below the pre-Budget level recorded in April and 15.6 per cent below the post-election high recorded in November last year.

On top of that, research conducted by RP Data found property values climbed by 1.4 per cent in June after suffering a 1.9 per cent drop in May.

Moving forward, I expect the Reserve Bank of Australia to leave the official cash rate on hold for some time yet.

As your local mortgage broker, I can offer you a free Home Loan Health Check which may help you find a home loan that is not only better suited to your needs, but much more competitively priced than your current home loan. You may find you are able to save hundreds, if not thousands of dollars a year simply by giving your home loan a health check.

 

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. 


Posted in: Interest rates

Contact us today.


Additional Comments? * :