Cash Rate Remains on Hold at 2.5%

As was widely expected the reserve bank today decided to leave interest rates on hold at 2.5% based on a number of economic factors. This is the eighth consecutive month we have seen no change to the lowest cash rate in 60 years.

The national economy and outlook continues to recover and show signs of positive improvement however the outlook remains mixed between differing industries and regions.

Despite the cash rate remaining on hold, the costs of mortgages are continuing to fall as competition between the major lenders deepens fuelling buyer activity among the two major cities, Sydney and Melbourne.

“Home buyer activity continues at the highest level for nearly four years, although recent strong prices growth particularly in Sydney and Melbourne is expected to moderate.

Although more positive signs continue to emerge on the economy, official interest rates are likely to remain on hold for the foreseeable future with any future move heavily dependent on the state of the jobs market.”, says Dr Andrew Wilson Senior Economist for Australian Property Monitors.

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