The Reserve Bank of Australia decided to once again leave the official cash rate unchanged at 1.5% with the last rate move back in August 2016. I’d like to share today’s rate announcement and the thoughts on why the Reserve Bank of Australia has made this decision.
With weak wages growth, continued low inflation and a lack of significant economic growth we can expect interest rates to remain where they are for the time being.
In the official announcment from The RBA, Philip Lowe the Governor of the Reserve Bank states “Inflation remains low, with both CPI and underlying inflation running a little below 2 per cent. Inflation is likely to remain low for some time, reflecting low growth in labour costs and strong competition in retailing. A gradual pick-up in inflation is, however, expected as the economy strengthens. The central forecast is for CPI inflation to be a bit above 2 per cent in 2018.”
Even though rates are unchanged, our role as a broker remains the same. There may be different rates available from our lenders, so we’re always on hand to ensure you have the right financial solution for your current circumstances, and are receiving the most suitable rate available to you.
If you’d like to have a chat about what today’s news means for you and your finances, please don’t hesitate to get in touch with one of our friendly staff on 1300-308-225
For more information about today’s announcement, visit https://www.rba.gov.au/media-releases/2018/mr-18-07.html