The Reserve Bank announced this week it would take a ‘wait and see’ approach to interest rates. The decision means the cash rate will be left on hold at 1.5% for another month.
Mortgage Choice chief executive officer John Flavell says the decision is no surprise. “The Australian economy has been tracking along quite nicely of late,” he says. “Business sentiment remains relatively robust, as does consumer confidence and the property market.
“As a result, there has been no need for the Reserve Bank to re-think their current stance on monetary policy.”
Flavell says property prices continue to rise across most markets, while data from the Australian Bureau of Statistics shows home loan demand remains at historical highs, with more than $30 billion worth of home loans approved over the month of July.