The all-time low cash rate of two per cent will be around for at least another month, as the Reserve Bank of Australia (RBA) makes its June announcement. RBA governor Glenn Stevens revealed on 2 June that conditions in the domestic economy still weren't quite strong enough to warrant a change to the cash rate.
There is, however, some room for optimism as evidence suggests that the Australian economy is starting to grow. Although lower than the long term average, this growth suggests that the current monetary policy conditions are working as they should.
Attention has now turned to how long the official cash rate will stay low for. If you're thinking of buying real estate in Bentleigh, this is likely to be a question that's on your mind, especially if you have yet to secure the finance you need.
Chief economist at the Housing Industry Association Harley Dale believes it could be some months before a rate change takes place – which is good news if you haven't yet made your move on the market. He indicated that the RBA has already pointed towards the fact that the rate will stay low "over coming months", but only time will tell if this is actually the case.
"Housing demand will also be assisted by this highly favourable interest rate environment, which is very important given the new home building sector is providing a vital boost to an otherwise under-performing domestic economy," noted Mr Dale.
The RBA revealed that it would be keeping a close eye on the economic and financial data that it receives over the coming weeks to decide whether the official cash rate will need to be changed.
If you're hoping to make the most of the low cash rate environment, make sure you get in touch with Matt Hurlston and the team at Ray White Carnegie. We're here to help with every step of the process and make sure you move into a property suited to your needs.
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