At its first meeting for the new financial year, the Reserve Bank of Australia (RBA) has today elected to keep the official cash rate on hold at 2.0 per cent.
The news was widely expected by analysts as the RBA waits for the economy to adjust to its rate cuts in February and May this year. With the Australian dollar already showing signs of returning to more acceptable levels, analysts are undecided whether the RBA will drop rates again this year or not. If another rate cut does occur this year, it will most likely be in November or December.
Australian property markets are traditionally slower during the winter months and this year is no exception. Auction numbers in Sydney and Melbourne are still quite high, but have eased considerably compared to May and June. Other markets have also cooled slightly, but should pick up again as spring approaches and interest rates remain at all-time lows.