Interest rate stability provides desired financial security
Financial security is the name of the home ownership game and the Reserve Bank of Australia (RBA) is playing nice, keeping interest rates steady at July’s meeting, for the second consecutive month.
It came as no surprise to industry professionals but for would-be and current mortgage holders, the June and July interest rate hold at the historically low 2.75% after May’s cut, provides a sense of relief as everyday households continue to face the rising costs of living.
Factors contributing to the RBA’s decision to hold the rates include the sudden fall in the Australian dollar, which lost around 11 per cent from where it was around mid April, as well a pull back in mining activity and low inflation.
The RBA might well be patting itself on the back and deservedly so, as the rate reductions of the last 12-18 months appear to be having their desired effect and we’re see good lifts in retail spending and property purchases.
The question is, as always - what will the bank do next? Ah to have a crystal ball! There has been discussion of one more rate cute this year, however, our financial experts at Choice Home Loans think the RBA will wait and see for now.
The friendly experts at Choice Home Loans are available to discuss any of your needs, from helping you plan your first house purchase and grant options to assisting with refinancing or looking at an investment property, simply contact them at email@example.com or call 1300 2 CHOICE