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.
Source: Corelogic
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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.