At its meeting today, the RBA board decided to leave the cash rate unchanged at 1.50 percent.
What does that mean for US?
For our mortgages we can rest easy for the Christmas period knowing that our biggest household cost is left unchanged. The RBA reported that ‘The Australian Economy is performing well. The main data supporting this statement is, GDP growth is expected to average around 3.5% over this year and next, before slowing in 2020 due to slower growth in export of resources.’
The property market has weathered its own storm over the past 12 months with sale prices below vendor expectation whilst demand was constant. The main cause, Banks revised lending practices altered to comply caused by the continued scrutiny received from the Banking Royal Commission. Banks have increased rates out of step with the Reserve Bank in 2018 in an attempt to reduce the Australian appetite for debt, but if our economy is to grow, we will need banks not increase rates and resume responsible lending practices to those who are ready to invest in a healthy Australian Property Market.
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