As expected, the Reserve Bank of Australia (RBA) decided to leave the official cash rate on hold at 1.5 per cent at their June meeting today.
The RBA has not moved on rates since August 2016, with the objective of stimulating inflation, employment and wages growth through rate stability. However, the Organisation for Economic Cooperation and Development (OECD) is now forecasting official rates should gradually start to rise in late 2018, as these RBA measures start to take effect.
Meanwhile, local analysts are anticipating that lenders will soon start to raise rates outside of RBA movements, due to the rising costs of borrowing. Interbank lending rates (the rates that apply to Australian banks when lending money to each other) are on the rise and are likely to affect home loan interest rates across the board.
If you’re concerned about how this potential rise in rates may affect you, please give us a call.
Winter is here and action in our property markets is starting to slow. Auction clearance rates and home values are weakening, so conditions are currently favouring buyers. If you’re in the market for a new home or investment property, please get in touch now to arrange pre-approval on your loan.