RBA running out of room to cut rates

Get the latest property insights and market trends

In the last Reserve Bank meeting, the RBA adopted a wait and see attitude, electing to leave official cash rates at 0.75%.

RBA governor sounded a cautiously optimistic tone, suggesting that the economy was beginning to show some signs of emerging from a soft patch and that it was time to assess the effects that the rate cuts  were having on the economy. Mr Lowe, made it clear that he was aware that further rate cuts could send the wrong signal to Australians and drive confidence down further.

The RBA effectively has two rounds of rate cuts left within its disposal before that particular economic lever can no longer be used. Mr Lowe stated categorically that he could not envisage a situation where the RBA would enter the negative interest rate territory that some other e entered inWestern nations have the past couple of years. With this in mind, it is likely that the RBA will be cautious with regards to considering future rate cuts. However, even taking this into consideration, the market is expecting that the RBA may have little alternative but to cut interest rates again in the first half of 2020. Analysts point to the continued low growth in wages and low inflation rate to support their expectations.

Whatever the outcome, it is fairly certain that Australian homeowners and investors will continue to enjoy this low interest rate environment for the foreseeable future.

If you would like to see how you can take advantage of the current low interest rate environment, what your borrowing capacity might be or whether you are currently getting the best value home loan for your circumstances, give the team at AUstralian Finance Hub a call today.

Process. Easy next steps to get you started

We meet you and discuss your exact needs.

We research your exact options with our lenders.

We present you with a tailored solution.

We build and maintain a lasting relationship.

Play Video

We’re here to help. Contact us for expert advice on all your loan needs.

Australian Finance Hub Pty Ltd ACN 616979689 Credit Representative Number 496108 is authorised under Australian Credit Licence Number 389328. Copyright © 2022 AFH Group. All rights reserved.
Privacy Policy     Compliments & Concerns

The website provides general advice only. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions.

Request a call to review your loans and financing options.