The Reserve Bank of Australia (RBA) will keep interest rates on hold in July as experts predict the next interest rate move won’t be for years.
The RBA hasn’t moved rates from their record low 0.25 per cent level since March as Australia battles the twin challenges of coronavirus and the economic fallout.
A panel of 43 experts and economists all predicted a hold verdict for July. Most experts agreed rates wouldn’t increase until at least 2022 as low wage growth, inflation and employment present major barriers to growth.
“We expect to have years of low interest rates ahead of us and lenders themselves have sharpened their pencils in recent times, cutting their rates on various products to remain competitive,” a Reserve Bank spokesperson said.
“The pandemic continues to cast a shadow over the economy and the outlook is meagre, but for those whose income remains secure, a real estate purchase is comparatively affordable at present.”
The national house price index fell 0.7 per cent in June, marking the second consecutive fall in value after it fell 0.4 per cent in May.
With variable and fixed home loan rates at historical lows, now may be the time to look at your home loan deal, or even consider fixed rates.
LJ Hooker Home Loans lending specialists offer a free in depth review of your current home loan and what options may be available to you in the market. From there you can make the right choices in relation to your personal finances.
Download our handy ebook today!
We hope you found this article helpful. If you'd like to discuss it further please fill in the form below and we'll be in touch.
This article is prepared based on general information. It does not take into account individual financial objectives or needs and is not financial product advice.