eNews - July 2017
The Reserve Bank of Australia has made its monthly cash rate call, deciding to hold the official rate at 1.5% for the 11th month running since August 2016.
The RBA continued its wait and see approach taking into account the latest edition of mixed economic data - including the fact that unemployment has remained steady at 5.7%, while underemployment remains high and real wage growth is low. The decision may also be due to an expectation that future growth forecasts will remain modest and inflation is forecast at the lower end of the RBA's target range.
While the cash rate remains untouched at 1.5%, Australia’s lenders continue to tweak their pricing and policy and we have seen a number of the major lenders increase their interest only pricing.
Last month home values were back on the rise in Melbourne and Sydney, after the seasonally weaker month of May. In Sydney, home values increased by 2.21%, while Melbourne saw increases of 2.71%. Home values also increased in Perth (1.38%), Canberra (2.58%) and Hobart (2.77%). Darwin saw the biggest drop in home values, at -2.18%, while in Adelaide they fell -1.72%. Brisbane also saw a decrease of
As the new financial year kicks off, it’s a great time to start afresh. That could mean buying your first home, investing in property, or even refinancing your loan to a more suitable option. With the cash rate on hold and interest rates remaining low, now could be a good time to consider purchasing property.
Until next time.