The Reserve Bank have released their decision to leave the cash rate on hold at 1.75% for the month ahead. This comes following a 0.25% cut to the cash rate in May.
In releasing their decision Governor of the Reserve Bank Glenn Stevens made the following comments in relation to the present uncertainty in the Australian government and the changes that have been taking place in the UK with the referendum to leave the EU:
"Financial markets have been volatile recently as investors have re-priced assets after the UK referendum. But most markets have continued to function effectively. Funding costs for high-quality borrowers remain low and, globally, monetary policy remains remarkably accommodative. Any effects of the referendum outcome on global economic activity remain to be seen and, outside the effects on the UK economy itself, may be hard to discern.
In Australia, recent data suggest overall growth is continuing, despite a very large decline in business investment. Other areas of domestic demand, as well as exports, have been expanding at a pace at or above trend. Labour market indicators have been more mixed of late, but are consistent with a modest pace of expansion in employment in the near term."
To read the full statement released by the Reserve Bank please click here.
The cash rate remains at an all time low, and lenders around Australia are continuing to compete with each other to win business by offering attractive interest rates and unique loan products.
Are your financial solutions still working for you?
Now is the perfect time to review your home loan and make sure that you are still using the most suitable solution available to you in this current and changing market.
If you have any questions regarding this update and how the cash rate affects you, please do not hesitate to send us an email or contact our offices on 1300 663 943.
Have a great week ahead guys, and thanks for reading.