For the second month running, the Reserve Bank of Australia has left the cash rate on hold at just 2%. July’s rate decision comes amidst an uncertain global economic environment, after Greece recently voted against its referendum.
While Greece’s troubles are having an effect in Australia – most notably causing the dollar to drop to its lowest level since 2009 – there are equally pressing factors domestically that the Reserve Bank wants to keep an eye on before making a decision to change the cash rate.
The property markets in Sydney and Melbourne are both surging ahead and consumer sentiment is uneasy. Until the next consumer price index is released at the end of July, the Reserve Bank is sitting tight to see what effect the cash rate is having on the local economy.
There have been indications that if any of these areas start to cause concern, rates could drop rates again in response.
While the Reserve Bank continues to take a wait-and-see approach, buyers and home owners can make the most of historically low interest interest rates. Now is a great time to lock in low rates on a new loan or consider refinancing if you have an existing loan.
Unlike Sydney and Melbourne, the Brisbane property market is enjoying steady growth, putting buyers in a good position.