“Stable and unwavering.” Not a campaign slogan, although it could be the current motto of the Reserve Bank of Australia’s monthly meetings to discuss the official cash rate. Once again, the board has chosen to keep interest rates on hold with no movement on 1.5%pa since August last year.
Although officially winter, the Australian economy hasn’t cooled down. It’s not unusual for housing prices and the share market to drop slightly at this time of the year. However, it’s nothing to be concerned about.
Low Interest Rates bring a Steady Economy
The Australian economy, stresses Industry Super economist and former Treasury forecaster Stephen Anthony, is still growing, but slowly.
In fact, Australia has just become the country with the longest recession-free run in the modern world – 103 quarters in succession, slipping past The Netherlands, who held the previous record.
In fact, the Wall Street Journal has called Australia the “miracle economy” – the US has had two technical recessions and Japan has had six in the same period.
While we are in the winter months, it’s a good idea for mortgage holders or investors to sip on a cup of hot tea and consider their current situation and what opportunities low interest rates provide. If you are a homeowner thinking of selling in the spring, now is the exact time to look at any improvements that could add value to your property.
If you’re not planning on buying or selling, ask yourself – when was the last time we reviewed our interest rates? If it’s been a while, it’s very possible you will be missing out on opportunities.
As usual, we are here to help you with any questions you may have about your current or future mortgage.