The Reserve Bank of Australia’s decision to keep the official cash rate on hold at 2.5%, marks the sixth consecutive month that rates have remained stable. Strong consumer sentiment, a spike in inflation and improved business confidence led to the decision today.
A recent study by the National Australia Bank found improving business conditions and consumer confidence has reached a two and a half year high, while the surprise jump in inflation during the last quarter of 2013 has left the current rate of inflation in the middle of the RBA’s target range.
According to the latest Westpac Melbourne Institute of Consumer Sentiment Index, Australians are relatively optimistic about the economy. There is evidence that both house prices and housing activity are responding well to low interest rates which is having a positive impact on confidence.
Today’s cash rate announcement has delivered a very positive message to homebuyers and investors – positive economic indicators combined with low official rates means that it is a great time for buyers and sellers alike.
If you have been thinking about buying a property, now is the time to review your options. As your local home loan expert, I can help you find a home loan that suits your individual needs and circumstances at no charge to you. I can compare hundreds of home loans, from up to 27 of Australia’s leading banks and lenders to find the right option for you.
If you would like to discuss how you can make the most of the cash rate announcement, please call on 9363 3333 or 0418 166 866 to arrange a time to meet.