Interest rates are likely to remain on hold as the Governor of the Reserve Bank Philip Lowe holds off on further rate cuts. This is off the back of private sector wage growth hitting a record low of 1.8%. Real wage is getting close to zero as headline inflation is running at 1.5%
The Reserve Bank's concern about housing prices will keep interest rates where they are for the time being. Philip Lowe further commented at a business gathering recently, "the government would like to see the economy grow a bit more but dropping interest rates would encourage more borrowing and put further pressure on housing prices" he said.
With flat wage and economic growth, low interest rates will be around for a lot longer. Fixed interest rates have spiked slightly over recent time, however there are still very competitive rates in the market.
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