The Reserve Bank has kept rates steady at 2% as the property market gears up for the spring season.
At its monthly board meeting the RBA maintained its ‘watch and wait’ approach amid a weakening share market, concern over the impact of a slowdown in China and the ongoing Greek debt crisis.
The widely-anticipated move keeps Australia’s official cash rate at its lowest ever.
Low interest rates are acting to support borrowing and spending.
RBA Governor Glenn Stevens says the economy continues to expand at a moderate rate and while growth is below the longer-term average, Australia has seen reasonably strong growth in employment and a steady rate of unemployment in the past year.
“In such circumstances, monetary policy needs to be accommodative. Low interest rates are acting to support borrowing and spending. Credit is recording moderate growth overall, with growth in lending to the housing market broadly steady over recent months,” Stevens says in a statement.
“Dwelling prices continue to rise strongly in Sydney, though trends have been more varied in a number of other cities. The Bank is working with other regulators to assess and contain risks that may arise from the housing market.
“The Board today judged that leaving the cash rate unchanged was appropriate at this meeting.
“Further information on economic and financial conditions to be received over the period ahead will inform the Board’s ongoing assessment of the outlook and hence whether the current stance of policy will most effectively foster sustainable growth and inflation consistent with the target.”
In the Southern Highlands, we are still expecting a strong market as the rates remain steady. However, it is still predicted in 2016 the interest rates will start to move. A buyers agent can help you purchase your property before the rates possibly move next years