At the Reserve Bank of Australia’s Board meeting today, the decision was made to keep the official cash rate on hold at 1.5%.
This is the sixth consecutive month that the official cash rate has been left on hold.
A range of domestic and global economic factors gave the Reserve Bank no reason to adjust the cash rate.
According to the Westpac Melbourne Institute of Consumer Sentiment, confidence has remained relatively the same as it was last month, although it is down from the high levels seen in previous months.
In addition, Australia recorded its lowest annual inflation rate in 19 years.
Data from the Australian Bureau of Statistics revealed inflation only rose 0.5% in the December quarter and had an annual growth of just 1.5% - below the Reserve Bank’s target band range of 2-3%.
While the cash rate has been left on hold this month, future rate adjustments should not be ruled out.
Regardless of what happens with rates in the future, it is important to note that home loan interest rates currently sit at near-historical lows, which is good news for property owners and anyone looking to get into the market.
If you have a mortgage and wanting the security of having the same rate for a period of time, it may be worth considering a fixed rate option.
Make time to speak to your mortgage broker today to ensure you are on the right track with your property and financial goals.