The Reserve Bank of Australia today released their decision to leave the cash rate on hold at 1.5% for the month ahead.
In the monetary policy statement Phillip Lowe, Governor of the Reserve Bank, made the following comments:
- The Australian economy expanded by 0.8% in the June quarter. This outcome and other recent data is consistent with the bank’s expectation that growth in the Australian economy will gradually pick up over the coming year;
- There have been more consistent signs over recent months that non-mining business investment is picking up;
- Employment has continued to grow strongly across the country in recent months;
- Wage growth remains low and this is likely to continue for a while yet, although the stronger conditions in the labour market should see some lift in wage growth over time;
- Growth in housing debt has been outpacing the slow growth in household incomes for some time now;
- APRA has introduced several supervisory measures to address the medium-term risks associated with high and rising household indebtedness;
- Following tightening in credit conditions, growth in borrowing by investors has slowed a little recently;
- Conditions in the housing market continue to vary considerably around the country with prices rising briskly in some markets and declining in others;
- Rent increases remain low in most cities;
- The low level of interest rates continues to support the Australian economy; and,
- In considering all the available information the Board judged that leaving the stance of monetary policy unchanged would be consistent with sustainable growth in the economy and achieving the inflation target over time.
You can read the full monetary policy statement released by the Reserve Bank here.
An Opportune Time to Review Your Solutions
With interest rates remaining low, now is an ideal time to review your existing financial solutions to ensure that they continue to work for you as your personal circumstances and market conditions change.
Reviewing your financial solutions will allow you to assess whether you may be able to:
a) Save money on repayments;
b) Secure a lower interest rate;
c) Access a product with additional features and/or benefits;
d) Consolidate other high interest debts; or,
e) Release equity you have built in your property for other purposes.
iconic home loans offer a complimentary mortgage review service.
To arrange a complimentary mortgage review please send an email to firstname.lastname@example.org with the following details:
- Your full name;
- Preferred contact number;
- Preferred email address; and,
- The details of the financial solution that you would like to review.
Please include 'Mortgage Review Request' in the email subject line.
One of our friendly brokers will then give you a call to arrange a suitable day, time, and place for your review.
To find out more about the potential benefits assosiated with reviewing your mortgage click here.
Thank you for taking the time to read this update.
If you have any questions about the cash rate update and how it affects you, please do not hesitate to contact us.