Poor consumer sentiment encourages RBA to leave cash rate untouched
Despite a small increase in consumer sentiment last week, the fact that pessimists continue to outweigh optimists has provided the Reserve Bank with enough reason to leave the official cash rate on hold.
At its Board meeting earlier today, the RBA announced its plans to leave the official cash rate on hold at 2.5 per cent for the 15th consecutive month.
According to the most recent Westpac Melbourne Institute Index, consumer sentiment rose by just 0.9 per cent in October. This is the eighth consecutive month that the Index has printed below 100, which means pessimists continue to outnumber optimists.
Moving forward, it is now highly unlikely that the Board will raise the cash rate anytime soon as this may further negatively impact consumer sentiment.
So, with rates still on hold and set to stay this way for the short term, now is a great time for those with a mortgage to review their home loan and make sure they are still in the most suitable product for their needs
As your local Mortgage Choice broker, I can offer you a free Home Loan Health Check. By comparing your current home loan against others available in the market, we may be able to find you a loan that is not only better suited to your needs, but much more competitively priced. You may find you are able to save hundreds, if not thousands of dollars per year!
For a free Home Loan Health Check, please call me to arrange a time to meet.