The RBA left the cash rate unchanged at 2% for the month of September. It would be the fifth consecutive month in which the RBA did not change the interest rate since the Month of May. The cash rate is at the lowest point during the past 30 years.
The Governor of RBA had made the following observations to support the decision:
- The Federal Reserve is expected to start increasing its policy rate over the period ahead, but some other major central banks are continuing to ease policy
- Overall, the economy is likely to be operating with a degree of spare capacity for some time yet, with domestic inflationary pressures contained.
- Dwelling prices continue to rise strongly in Sydney, though trends have been more varied in a number of other cities. The Bank is working with other regulators to assess and contain risks that may arise from the housing market.
- The Board today judged that leaving the cash rate unchanged was appropriate at this meeting.
We will help you to review your home as part of our complimentary service, to fine tune to help you to save money from your home loan, please remember a 0.8% difference in the interest rate on a 600,000 home loan would mean a difference of 4,800 interest saving on a yearly basis.