Interest Rate Update
Since the election this year there have been two interest rate changes, a new prime minister and the banks have lowered their assessment rates.
August is the first month where things appear to have stabilised. This is true for todays RBA announcement with the RBA deciding to keep the cash rate on hold at the historical low of 1%.
Many economists will tell you that a lower cash rate is a reflection of the lack of business confidence in our economy. So whilst those of us with Home Loans would like to see our minimum monthly reduce as much as possible, it can be a double edge sword.
So to close on that, no changes this month (August) to the cash rate.
A reminder that there are some amazing fixed rates on the market below 3% with some lenders already pricing in 1-2 more rate cuts. And anyone with a variable rate mortgage with P&I repayments should have an interest rate with a 3 in front of it. If you don’t, please reach out.
unds nice, it is probably not the most financially sensible thing to do