Recent rate increases by Westpac and Suncorp were a factor in the RBA’s decision this week to leave the official interest rate on hold for yet another month at 1.5%.
It marks the longest ever run of interest rate stability in Australia, with the last movement (a cut) happening back in August 2016.
During its last meeting on 7 August, the RBA board had examined an economy in generally good health, with steady growth in retail sales and employment, housing prices easing in Sydney and Melbourne, and overall growth expected to sit just above 3% in 2018 and 2019.
Inflation — the key driver of interest rate movements — remains relatively subdued at 2.1%.
The decision to keep rates on hold for yet another month had been widely anticipated, particularly since some lenders have started lifting rates of their own accord.
On 29 August Westpac became the first big bank to move, increasing its standard variable rates by 0.14 of a percentage point. Suncorp followed suit two days later.
If you are considering investing in property now whilst interest rates are on hold or would like to review your current situation, come in for a Planning & Strategy Session.
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