No one expected interest rates to move this month as twelve bank economists predicted rates to stay on hold. Some experts are suggesting a possible rate cut as soon as August but other are expecting a move in November. The Reserve Bank of Australia (RBA) will wait until further data on inflation comes through for the June quarter before it makes its next move.
On inflation, in a statement on Tuesday, the RBA Governor Glen Stevens, hinted inflation is expected to stay within the bank's range of 2 - 3 per cent for some time which means interest rates are expected to stay remain low for the same period.
With further uncertainty domestically and the concern surrounding the slow growth in the EU following Britex, it is fair to say, any rate cuts will be more likely in the coming months.
On the back of the current environment, banks continue to lend at competitive rates. I have nine lenders on my panel who are offering rates under 4.0% for owner occupied loans. For an obligation free quote on available rates or if you have any questions on the current market, feel free call me on 9525 0112.