At its first meeting for 2020, the Reserve Bank of Australia (RBA) decided to keep the official cash rate unchanged at 0.75%. This is still the lowest it’s ever been!
While the first 2020 decision is to hold the cash rate, economists are predicting more rate cuts to occur early this year. However, RBA governor Philip Lowe has expressed that negative interest rates are unlikely and that the result of the previous cuts is already taking effect. “This pick-up in growth should see a reduction in the unemployment rate and a lift in inflation…so we are expecting things to be moving in the right direction, although only gradually.” Lowe said.
With this announcement and further cut predictions, it is likely that interest rates will remain low for a while. Mortgage rates are also at their lowest, so lenders are offering competitive loans. Speak with us soon for a mortgage refresh!
Property Market Snapshot