At it’s last meeting for 2018, the RBA decided to leave the cash rate at 1.5%.
Inflation remains low and stable, though is expected to pick up gradually over the next few years. In Australia, money-market interest rates have declined, after increasing earlier in the year. Standard variable mortgage rates are slightly higher than a few months ago and the rates charged to new borrowers for housing are generally lower than for outstanding loans.
With home loans continuing to remain affordable, the market is likely to stay competitive, so it’s important to be fully aware of the condition of the property you are looking a buying. Building and pest inspections are a key part of this process and gives buyers confidence in the condition of the property.
In the Sydney and Melbourne housing markets conditions have continued to ease and nationwide rent inflation remains low. Investors demand for credit has slowed as the dynamics of the housing market has changed. Growth in credit extended to owner-occupiers has eased to an annualised pace of around 5%. Competition is strongest for borrows of high credit quality as mortgage rates remain low.
The Australian economy continues to be supported by the low level of interest rates. Taking account of the available information, the RBA 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.