Every month we gain an insight into why the Reserve Bank of Australia makes it’s interest rate decisions with the release of the minutes from their meetings.
This month the meeting minutes revealed that the RBA feels that keeping interest rates where they are is “likely to be appropriate for some time yet.”
Generally we see very subdued and measured language from these minutes, as the RBS knows that they will be poured over and any comment that is negative will be pounced upon as a sign of impending doom.
Thats why the phrase “some time yet”, as used in the minutes tells us that the RBA is in no hurry to move the rates from where they are.
Why rates will remain on hold
The board pointed out that the recent federal budget cuts and that fact that the demand for iron ore from China is slowing along with a slower growth in Australian exports was the reason they see interest rates staying put for a while.
How you can benefit
This is great news for people looking to get into the market as they can still take advantage of the historically low rates. Also it gives those people who are thinking about fixing their rate a bit of breathing space, and another chance to assess if this is an option for them in the coming months.
If you are considering your options, or just want to make sure your current home loan is competitive in the current market, call Peter Hale from Mortgage Choice North Perth on 0402 252 150, or email email@example.com