At its meeting today, the Reserve Bank of Australia (RBA) decided to leave the official cash rate unchanged at 1.5 per cent. Today’s decision makes it 23 months in a row where the RBA has decided to leave the cash rate on hold. That is just one month short of 2 years and also the longest period without a cash rate rise in the RBA’s history – when Hawthorn were 2 games clear on top of the ladder and Brent Harvey had just passed Michael Tuck’s record for most VFL/AFL games played.
The cash rate remaining at 1.50% it sits with most Economists’ predictions. However, the experts are divided on when the next move would be but most expect it to increase – eventually! When asked recently what the next movement may be, regardless of when it happens, 84% of a panel of 31 economists said they believe the next move will be an increase.
However, no movement for now doesn’t mean homeowners won’t see any rate rises. Over the last few weeks a number of smaller lenders have increased rates out of the cash cycle, citing increased funding costs. There is a strong view in the market that others will follow and with extra focus now on interrogating income and expenses in loan application assessments, we will see personnel costs for lenders rise and that all may lead to increased rates!
To ensure you have the right loan for your needs and to ensure that you aren’t paying too much in way of interest rate, contact an Elders Home Loans broker for a free home loan review. Just visit eldershomeloans.com.au or call 1300LENDING.