Wednesday, 4th Apr

Interest Rates on hold for the 18th consecutive month. Will there be a rise this year?

As expected, the RBA have left rates on hold at 1.5%; the last move in rates having been in August 2016. That's 18 consecutive months on hold. Here is what the Governor Philip Lowe had to say in his announcement:

“Taking account of the available information, the Board judged that holding the stance of monetary policy unchanged at this meeting would be consistent with sustainable growth in the economy and achieving the inflation target over time. The low level of interest rates is continuing to support the Australian economy. Further progress in reducing unemployment and having inflation return to target is expected, although this progress is likely to be gradual.”

Economist Saul Estlake summed up the situation by saying: “nothing has materially changed since the RBA last stated that current monetary policy settings were (in its opinion) appropriate”. However some financial commentators/so called "home loan experts" believe that global market conditions (in particular US economic policies) could prompt lenders to increase rates in coming months regardless of the RBA's decision.

Full inflation figures for March Quarter are due out just before the May announcement, but with this and the Federal budget looming, we expect rates to stay as they are for the imminent future.

If need help searching for, evaluating or negotiating property, call us today for a confidential discussion on (+61)2 9960 1066 or +61 419 200 018. Also don't forget to check out our 2 minute video tutorials on our PK TV page and/or subscribe to our Monthly Market Update for more thoughts and comments about what's happening in Sydney's property market, as well as tips and tricks to use and much more!

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