It’s the news homeowners had been hoping for – The Reserve Bank of Australia left the cash rate on hold this month at 4.10 per cent.
The decision comes hot on the heels of weaker monthly inflation data which provides more time for the RBA to analyse the impact of its significant monetary policy tightening.
The RBA continues to be concerned by Australia’s low levels of productivity and risks to the path of inflation, but wage growth currently remains consistent with its long-term inflation target. While household spending has weakened, there is still some risk that inflation will become more entrenched, which the RBA will seek to avoid. Without further price shocks, we believe the end of the interest rate hiking cycle is close, with the peak likely to be reached in the coming months.
Even though the decision may be a relief, it’s important to keep reviewing your home loan to ensure it is competitive and meets your needs. Refinancing could help reduce your interest rate and you could benefit from features like redraw facilities, offset accounts, or consolidating your debt.
To talk through your options, please get in touch today.
