Of the 24 economists polled, all predicted today’s outcome – the RBA has settled into a holding pattern, with official cash interest rates remaining on 2%.
The Australian economy has had some great news of late – business credit has expanded, showing more confidence in commercial markets. Personal credit is down, with many households making the positive step towards decreasing their debt.
Furthermore, the Australian Industry Group manufacturing index is at its highest since 2004, which is fantastic for our export market.
Strong banks help keep interest rates low
Australia’s ‘unquestionably strong’ banks are buoying the economy, says David Murray, chairman of the financial system inquiry. Our banks are ‘well ahead’ of our American, European and British counterparts, with increased buffers and improved quality of capital.
On the housing front, the seasonal shifts continue as usual. As we head into cooler weather, the housing market settles in for the traditional winter period. This is a good time for homeowners who are thinking of selling to spruce up their biggest asset for the booming spring period and, for investors, there are great opportunities to buy low and reap the rewards of a major renovation.
If you’d like some help to plan your next move while interest rates remain low, please don’t hesitate to contact us.