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20.01.2022 RBA makes cash rate move The Reserve Bank dropped the official cash rate for the first time in almost three years. The Reserve Bank of Australia (RBA) has cut the ... official cash rate to 1.25 per cent, following its monetary policy board meeting. The central bank’s decision was predicted by most industry pundits. The shift in expectations followed RBA governor Philip Lowe’s concession earlier this month that the board would consider the case for a rate cut in June, in light of flat inflation growth, subdued wage growth and weaker than expected labour market conditions. Capital chief economist, Shane Oliver, observed: Growth has slowed, inflation has slowed well below target, unemployment looks like it is now starting to rise when it needs to be falling to get inflation back up, and the RBA has recognised all of this and moved to an easing bias. However, some analysts were expecting the RBA to hold off until the domestic and global economic outlook was clearer. Most analysts are expecting the RBA’s June decision to be the first of several cash rate reductions in 2019. Attention turns to mortgage rates The market will be closely monitoring the response from lenders, with some doubting that savings will be passed on in full to mortgage holders. It is said that lenders may look to recover losses incurred from weaker credit growth. Many lenders have been hiking rates since 2017 due to the high cost of funding, but this pressure has dissipated, so the next RBA cut should, in theory, be passed on in full, according to the market. That said, it’s been a tough year for the banks in a slowing home loan market, so some lenders may choose to hold part of the cut back and wear any flack. According to the housing research industry, lower mortgage rates, along with APRA’s proposed changes to mortgage serviceability guidelines, and perhaps perceived political stability from the outcome of the federal election, could perhaps trigger a rebound in the housing market. However, continued income and expense scrutiny on prospective borrowers and economic conditions to offset the stimulus. The housing market is not expecting a rapid reversal in house price declines and it is fair to say that is due to ongoing tight credit policies, apartment and unit oversupply and more broadly, economic uncertainty as global trade tensions escalate.

16.01.2022 This is worth knowing about ...

11.01.2022 This is good news for buyers, not so great for sellers though. I guess it had been the other way around previously and if there is one thing certain about life, it is expect change.

10.01.2022 Here's an intersting article if you are heading to an auction

04.01.2022 RBA interest rate update: For the 3rd time in five months the Reserve Bank of Australia has decided to reduce the official cash rate, this time to 0.75%, in a concentrated effort to boost the economy. In making the decision to lower rates again the RBA has strongly reinforced its focus on supporting employment growth and boosting household consumption to restore inflation to within its target range of 2 -3% pa. ... The RBA will also have been very conscious of the impact on Australia's exchange rate and the competitiveness of our exports had it not reduced rates in line with global trends. Word is though, that the full cut, or any of it, may not be passed on to consumers, although of course consumers will likely face an immediate cut on their interest rate for deposits.

04.01.2022 RBA RATE UPDATE While the autumn wind blows colder, things are heating up in the property market as the Reserve Bank of Australia (RBA) decided to slash the official cash rate to a historic low of 0.50% at its meeting today. At the previous meeting, RBA governor Philip Lowe said that despite expectations of stronger global growth this year, the recent coronavirus outbreak has become a source of uncertainty. In the short term, the bushfires and the coronavirus outbreak will t...emporarily weigh on domestic growth. He also said that we may expect an extended period of low interest rates. The Board will continue to monitor developmentsIt remains prepared to ease monetary policy further if needed, Lowe said. The cash rate is the lowest it’s ever been and lenders are offering competitive rates to help you achieve your property goals. If you have had your mortgage for a while, now’s the perfect time to make the most of the cash rate cuts, so let us help you out. Get in touch today!

04.01.2022 Here's something a bit different ...