There was one safe bet yesterday – that the Reserve Bank of Australia would keep the cash rate on hold. With the latest set of inflation figures looking promising, the Board decided to leave interest rates at 1.50%.
This indicates we won’t see any changes to the cash rate in the foreseeable future, as it’s unlikely there’ll be any changes in December, after which the Board won’t meet again until February next year.
After the decision, Governor Philip Lowe indicated that the economy is performing well in key areas. “In Australia, the economy is growing at a moderate rate,” he said. “The large decline in mining investment is being offset by growth in other areas, including residential construction, public demand and exports.”
He also explained that growth is forecast for the next 12 months, after which the economy is expected to strengthen.
The latest decision comes after the release of October’s housing figures, which showed that Brisbane house prices rose by 0.8% last month. While there are concerns of an apartment oversupply, this doesn’t appear to be having a negative impact on property prices across the city.
So with rates on hold for the near future, now is the time to make to most of low interest rates. This is the perfect opportunity to get ahead by making extra repayments and negotiating a better interest rate with your lender while your repayments are low.
Latest Brisbane property market stats:
- Official cash rate: 1.50%
- Brisbane median house sale price: $675,000*
- Brisbane median unit sale price: $457,500*
- Auction clearance rate: 58%
- Interest rates starting from 3.69% p.a.
*These are the latest CoreLogic RP Data figures from September, 2016. They are based on sales data from the Brisbane City Council region only.
– Luke Cashin
0419 733 862 | email@example.com
Your Garden City Mortgage Broker, Brisbane