The Reserve Bank has decided on the cash rate for May 2017 and as anticipated by many they have chosen not to shake things up with a cash rate change prior to the upcoming release of the Federal budget and the cash rate is set to remain on hold at 1.50% for the month ahead.
In releasing the monetary policy statement Phillip Lowe, Governor of the Reserve Bank, made the following comments on the Australian economy and housing and finance markets:
- The Reserve Banks forecast for the Australian economy has little changed. Growth is expected to increase gradually over the next couple of years to a little above 3 percent;
- Conditions in the housing market continue to vary considerable across the country;
- Lenders have announced increases in mortgage rates, particularly those paid by investors and on interest only loans;
- Rent increases are the slowest for two decades;
- Growth in housing debt has outpaced the slow growth in household income; and,
- The recently announced supervisory measures should help address the risks associated with high and increasing levels of indebtedness.
Click here to read the full monetary policy statement for May 2017 released by the Reserve Bank.
The 2017/18 Federal Budget is set to be released on Tuesday the 9th of May at 7:30pm (AEST).
Are your financial solutions up to date?
With the constant changes in the finance and property markets it is recommended that you regularly review your financial solutions to ensure that you continue to use the most suitable solutions available to meet your needs.
iconic offer a complimentary loan review service where we will work with you to determine whether there is a more suitable product and/or interest rate available to you at the current time.
To arrange a complimentary review appointment with one of our brokers please send us an email with your name, contact information and preferred contact time so that we can call you back and see how we can help.
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Thanks for taking the time to read this cash rate update.
Enjoy the week ahead and we will be back next week with a summary of the 2017/18 Federal Budget.