Cash rate on hold for sixth consecutive month!
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.
With interest rates continuing to hold at record lows, it is the perfect time to review your current home loan.
As your local home loan experts, we can compare hundreds of home loan products, from up to 27 leading banks and lenders to find the right solution for you.
If you would like to discuss how you can make the most of the cash rate announcement, please call to arrange a time to meet.
(image courtesy of www.theaustralian.com.au as at 04/02/2014)