The Reserve Bank has released the first cash rate decision for 2018.
The cash rate will remain unchanged at 1.5% for the month ahead.
Phillip Lowe, Governor of the Reserve Bank, made the following comments in his monetary policy decision statement:
- The Australian economy is expected to grow a little over 3 percent for the next two years;
- Business conditions are positive and the outlook for non-mining business investment has improved;
- One continuing source of uncertainty is the outlook for household consumption, household incomes are growing slowly and debt levels are high;
- Employment grew strongly over 2017 and the unemployment rate declined;
- The various forward looking indicators continue to point to solid growth in employment over the period ahead, with a further gradual reduction in the unemployment rate expected;
- The central forecast is for CPI (Consumer Price Inflation) to be slightly above 2 percent in 2018; and,
- The low level of interest rates is continuing to support the Australian economy.
To read the full statement by Phillip Lowe, please click here.
How does the cash rate affect you?
With the cash rate still at an all-time low, interest rates are low and competition between lenders is high.
Now is the perfect time to review your current financial solutions and assess whether there is now a more suitable product/rate available to you.
iconic offer a complimentary loan review service, contact us and arrange your review appointment now to see if you could be saving money by utilising a more suitable financial solution.