December 2015 RBA Announcement: RATES REMAIN ON HOLD

December 01, 2015
Nicole Spiteri

RBA ends year with official cash rate on hold


The Reserve Bank of Australia has decided to leave the cash rate on hold once more, marking the seventh consecutive month that the cash rate has been 2%.

Mortgage Choice franchisee Des Nation said a better than expected consumer sentiment result combined with easing property prices ultimately drove the Board’s decision.

“Data from CoreLogic RP Data shows the housing market continues to see an easing in the rate of capital growth, with new research showing dwelling values actually fell across five of the eight capital cities in November, taking the combined capitals index 1.5% lower,” he said.

“Across the capital cities, Melbourne recorded the biggest drop, with values falling 3.5% over the course of the month. Meanwhile, in Sydney, property prices fell 1.4% over the course of the month.

“This data makes it clear that Australia’s two hottest property markets have officially started to cool.”

In addition to a recent drop in dwelling values, Mr Nation said strong consumer sentiment would have also encouraged the Reserve Bank to leave the official cash rate on hold in the run-up to Christmas.

“According to the Westpac Melbourne Institute Index of Consumer Sentiment, confidence rose by 3.9% in November, which is a cracking result,” he said.

“To put this improvement in confidence in perspective, the Consumer Sentiment Index is now sitting at a level we haven’t really seen since January 2015.  Further, the Index is 8.3% higher than in September and marks the third month in the last 21 where optimists outnumber pessimists.”

Mr Nation said the bounce back in confidence was great news heading into Christmas and the Reserve Bank would be careful not to do anything that would jeopardise sentiment at this time.

“As per the findings of the Index, consumers are incredibly upbeat about Christmas spending this year, with one in five Australians stating that they plan to spend ‘more’ this year,” he said.

“But while the Reserve Bank of Australia has decided to finish the calendar year with the official cash rate sitting at 2%, that does not mean to say rates will continue to sit at this historically low level forever.

“In fact, some economists are now predicting that we could see a cash rate rise in the not-too-distant future. So, for those thinking of buying property in the New Year, now is a really good time to start looking.

“Rates are still very low and Australia’s lenders remain incredibly competitive and hungry for business.”


If you want to learn more about your home loan options, call (02) 9833 8177 or visit


For further information, photos of the new logo, or to arrange an interview, please contact:

Des Nation

Mortgage Choice

0412 709 700


Important information

This article is for general information purposes only. It has been prepared without considering your objectives, financial situation or needs. You should, before acting on the advice, consider its appropriateness to your circumstances.


About Mortgage Choice

Mortgage Choice is an ASX listed company that seeks to help Australians with all of their financial needs.

Established in 1992, Mortgage Choice was originally established to help Australians improve their financial situation by offering a choice of home loan providers, coupled with the expert advice of a mortgage professional.

Since that time, the company has grown and developed into a fully fledged financial services provider.

Today, Mortgage Choice helps customers source car loans, personal loans, credit cards, commercial loans, asset finance, deposit bonds, and risk and general insurance.

Further, the company offers Australians access to real, relevant and affordable financial advice through our qualified financial advisers.

Mortgage Choice has no balance sheet or funding risk, and consistently delivers strong profits and attractive yields. It listed on the ASX in 2004 (MOC) and is a member of the Mortgage & Finance Association of Australia (MFAA).

Mortgage Choice holds an Australian Credit Licence: no. 382869 and Mortgage Choice Financial Planning Pty Limited holds an Australian Financial Services Licence: no. 422854. Both licences are issued by ASIC.

Recent recognition: 2014 Australian Broking Awards Best Diversified Program; 2013, 2012, 2011 Australian Broking Awards Major Brokerage of the Year – Franchise; 2013, 2012 Australian Broking Awards Best Ethical/Social Responsibility Program; 2012 Australian Broking Awards Best Training and Education;   No.1 on The Adviser magazine’s 2012, 2011, 2010 and 2009 Top 25 Brokerages list; 2012, 2010, 2009, 2008, 2006 and 2005 MFAA Awards Retail Aggregator/Originator of the Year; 2011, 2010, 2009 and 2008 10 Thousand FEET Top 10 Franchise list; 2010 Forbes Asia-Pacific Best Under A Billion list.

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