RBA Announcement released today
RBA Celebrates Second Anniversary of Sitting On Their Hands
At the RBA Monthly Board Meeting today the RBA once again decided to leave the Cash Rate unchanged at 1.50%.
It’s now two years since the RBA last moved the cash rate, the longest run in history of no movement. It was in August 2016 when they last moved, dropping the cash rate from 1.75% to the current 1.50%.
However, whilst the RBA has taken a ‘do nothing’ approach, Lenders on the other hand have been quite active adjusting their market rates, both upwards and downwards depending on loan type and market pressure. Investors and Interest Only borrowers have suffered increases in their interest rates, whilst owner occupiers who have large deposits of 20% or more of the purchase price or value of the property have been the winners with generally lower interest rates.
Now, probably more than at any time in the past, it is worthwhile reviewing your current loan. Those who have had a loan for a few years and have taken a ‘do nothing’ approach with their loan will more than likely be paying a much higher interest rate than they could be getting elsewhere and therefore paying more for their loan. And in these days of low wages growth and higher cost of living every dollar counts.
Mark Lewis, Managing Director