eNews - March 2017
The Reserve Bank of Australia held the official cash rate on hold for the seventh month in a row at 1.50%.
As widely predicted the RBA has kept rates on hold as it balances a swag of recent positive economic news around growth in the economy, unemployment, house values and building approvals against a continued lack of wages growth and business investment.
Volatility in the global and domestic markets has put a lot of pressure on wholesale funding costs, which has forced some lenders to lift both their fixed and variable rates. It wouldn’t be a surprise to see more lenders move their rates out of cycle with the Reserve Bank. Even if rates do continue to move north, it is important for all borrowers and potential buyers to understand that the cost of borrowing is still sitting at near historical lows.
Until next time.