RBA Keeps interest rates on hold

After today’s RBA meeting, it has been decided that the cash rate will stay on hold at 1.5%. This is longest period of flat interest rates in Australia’s history (21 meetings)

The overall Australian economy is stable and the cooling of the property markets in Sydney and Melbourne mean that the RBA is not under pressure to adjust rates to control those. The forecasted GDP is remaining consistent at 3% while inflation remains low at around 2%. Labour markets are tightening with wage growth happening but slowly.

Globally, the economy is expanding and overall unemployment rates are relatively low. There is a little bit of uncertainty around the trade policy of the US but not enough to have a negative effect overall.

It is anticipated that interest rates will remain stable through the rest of 2018 and 2019 which is great news for property investors.

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