The Reserve Bank of Australia has again kept the official cash rate on hold  at its record low of 1.5 per cent.  There has not been an official cash rate increase since November 2010.

The RBA released the following statement regarding the Monetary Policy Decision “In Australia, money-market interest rates are higher than they were at the start of the year, although they have declined since the end of June. In response, some lenders have increased their standard variable mortgage rates by small amounts, while at the same time reducing mortgage rates for some new loans.” As a result, now is a great time to be talking to your mortgage broker to ensure you are getting a competitive deal on your home loan!

RBA Governor Phillip Lowe further explain in his Media Release Statement that “Conditions in the Sydney and Melbourne housing markets have continued to ease and nationwide measures of rent inflation remain low. Growth in credit extended to owner-occupiers remains robust, but demand by investors has slowed noticeably as the dynamics of the housing market have changed. Credit conditions are tighter than they have been for some time, although mortgage rates remain low and there is strong competition for borrowers of high credit quality.”