All the pundits were proved correct as the RBA announced that, once again, interest rates continue to stay on hold at the low cash rate of 2%. Needless to say, this is also very positive news for all Australian mortgage owners (and those who are looking to enter the property market).
The RBA’s decision to keep interest rates on hold reflects an increasingly positive mood for Australia’s prospects. Some believe the recent change in leadership will be highly influential – for example, the most recent ANZ/Roy Morgan weekly confidence index rose a dramatic 8.7% following the appointment of Malcolm Turnbull as prime minister.
Elsewhere, the number of businesses with a positive outlook has risen to the highest level since January 2014. In the Australian, economist, Stephen Koukoulas, said firms are benefitting from ongoing low interest rates and what is now a very competitive level for Australia.
Low interest rates bringing confidence
This confidence can be seen in many other sectors: jobs are holding up well along with pay rates, exports are looking good, tourism is on the rise, household savings are strong and, because we’re staying home more, we’re spending less overseas and more on our own shores.
Homeowners are so positive, they’re spending up big on home renovation, knowing that it will reap them rewards further down the track when they want to sell.
Meanwhile, there’s no shortage of choices for those looking for a hot property, and with interest rates predicted to remain low for some time to come, there has never been a better time for buying, selling or investing, so give your mortgage broker a call to see what can be done for you.