The first few months of 2017 has seen the RBA forming a holding pattern on interest rates – the cash rate remains at the record low of 1.5%.
While economists speculate about when (and what) the next move will be, most expect there will be no change for quite some time, and there is even speculation that the move could be down and not up.
No Change in Interest Rates for Some Time
This is, of course, is good news for mortgage holders. It’s just not interest rates that’s the good news story about the Australian economy, including a strong gain in the employment rate for the past three months as well as a rise in job vacancies and a lift in the economic growth rate (Australia is the only advanced economy in the work that hasn’t seen a recession in the past 25 years).
Businesses are faring well too – the Performance of Manufacturing Index has recently seen the strongest rise since 2002, the Construction Index rose in February and company operating profits rose by 20.1% in the December quarter – a record high.
Add to that the recent cuts in business tax and there’s optimism all round.
Australian Retailers Association executive director Russell Zimmerman is upbeat about the outlook following the passing of tax cuts for businesses with turnover up to $50 million.
“We are confident that the reduction in the company tax rate will benefit hundreds of thousands of small and medium-sized businesses, their employees and the broader Australian community,” Mr Zimmerman said.
With interest rates still at an all-time low and the property market hot as ever even with the cooler weather, and you may find yourself considering your next move. As usual, your mortgage broker is always here to help.