12 Feb RBA announces its final interest rate for 2018
It comes as no surprise that the cash rate was left at its current record low of 1.5%, despite some positive economic indicators. Governor Philip Lowe had this to say in his official statement:
“Conditions in the Sydney and Melbourne housing markets have continued to ease and nationwide measures of rent inflation remain low. Credit conditions for some borrowers are tighter than they have been for some time, with some lenders having a reduced appetite to lend. The demand for credit by investors in the housing market has slowed noticeably as the dynamics of the housing market have changed. Growth in credit extended to owner-occupiers has eased to an annualised pace of 5–6 per cent. Mortgage rates remain low, with competition strongest for borrowers of high credit quality.”
So, will this decision affect you? Despite the cash rate remaining on hold, it’s important to remain vigilant as there have been a number of lenders including four of Australian’s biggest lenders who’ve changed their interest rates at their own discretion. Make sure to keep an eye on any rate movement from your lender, and consider whether your current loan is still right for you.