No surprises as RBA leaves rates on hold again

November 04, 2015
Tina Kidman

At today’s Board meeting, the Reserve Bank of Australia has decided to leave the official cash rate on hold for the sixth consecutive month.

With consumer sentiment and business confidence both receiving a boost in recent weeks, following the Government spill and subsequent appointment of a new Prime Minister, it would appear as though there was no need for the Reserve Bank to change the current monetary policy setting. 

According to the latest data from the Westpac Institute of Consumer Sentiment, confidence climbed 4.2% over the month of October. Further, data from National Australia Bank shows there was a partial recovery in business confidence, with financial market volatility and emerging market concerns moderating from the heights of the previous month.

Both of these factors combined gave the Reserve Bank no real push to cut the cash rate. Of course, just because the Reserve Bank has chosen not to cut the cash rate at today’s Board meeting, doesn’t mean to say we have seen the last of the rate cuts altogether.

If consumer sentiment, business confidence and economic growth perform sluggishly, we may see the Reserve Bank cut rates again.

Whether you are buying for the first time or are looking to refinance, I can help you navigate the housing market and compare hundreds of home loan products to find you a loan that is not only competitively priced, but suited to your needs.

To have a chat about your home loan options or to book a free Home Loan Health Check, please contact me today to arrange a time to meet.

Posted in: Interest rates

Contact us today.

Additional Comments? * :