Today the Reserve Bank of Australia met for the first time in 2017 to set the cash rate for the month ahead.
Following their meeting their decision to leave the cash rate unchanged at 1.50% was announced.
Phillip Lowe, governor of the Reserve Bank, made the following comments when releasing the RBA's decision:
- Conditions in the global economy have improved over recent months which has contributed to higher commodity prices and has in turn provided a boost to Australia's National income;
- Interest rates have increased in the U.S. and there is no longer an expectation of further monetary easing in other major economies;
- Financial markets have been functioning effectively and stock markets have mostly risen;
- In Australia, the economy is continuing its transition following the end of the mining investment boom;
- Financial institutions remain in a position to lend and interest rates are low;
- Labour market indicators continue to be mixed and there is considerable variation in employment outcomes across the country;
- Growth in full-time employment turned positive in late 2016;
- Inflation remains quite low;
- Conditions in the housing market vary throughout the country, however borrowing for houses has picked up a little with strong demand by investors; and,
- Supervisory measures have strengthened lending standards and some lenders are taking a more cautious attitude towards lending in certain segments.
To read the full monetary policy decision statement released by the RBA today please click here.
SO, WHAT DOES IT ALL MEAN?
With mortgage interest rates at an all-time low also, credit lenders around Australia are in high competition with each other to offer attractive rates and products and secure business.
Now is the perfect time to review your existing financial solution to see if you could be saving money on your repayments and to ensure that you are still using the most suitable solution available.
If you have any questions about your mortgage or about the cash rate and how it impacts you, please do not hesitate to contact iconic home loans on 1300 663 943 or by enquiring via our website.
Alternatively, you can send us an email now with the details of how we can help and a member of our team will give you a call back.
Thanks for taking the time to read this update guys, have a great week ahead!
ICONIC HOME LOANS
*The information provided here is general only and your personal circumstances have not been taken in to consideration during its preparation, you should seek independent advice before making any decisions in relation to your personal finances. Finance availability is subject to applicant satisfying lenders qualifying criteria and all approvals are at the discretion of the lender.