RBA Announcement October 2018
RBA Holds Cash Rate at 1.50%
At its monthly Board Meeting today the RBA once again left the cash rate on hold at 1.50%.
The Board noted that the broad economy is improving, most notably with GDP increasing by 3.4% over the last year and forecast to continue growing over 3% per annum for the foreseeable future. However, they noted the slowdown in property prices, predominantly across the Eastern Seaboard as well as significant declines in investor activity in the housing market. On the contrary growth in lending to owner occupiers remains robust.
Whilst the cash rate has remained unchanged for in excess of two years now, lenders continue to steadily increase the interest rates on their home loans. In addition, tightening of lending standards and increased scrutiny of applications by Lenders is making the loan application process harder for most borrowers.
Now, probably more than ever, it pays to shop around and seek advice when thinking about a home loan.
Mark Lewis, Managing Director.