The Reserve Bank of Australia has left the cash rate unchanged at 2 per cent after last month’s drop by 25 basis points for the second time this year.
The decision by the RBA comes at no surprise to economists who tipped a third cut in the cycle was unlikely despite the Bank’s shift to a ‘soft’ easing bias.
Despite an ongoing drag from mining and non-mining business investment, a rate cut so soon after the cut in February and May, would have only added fuel to house price inflation, with last month’s drop further stimulating the housing market.
However, the hold on rates is still good news for homeowners and property seekers with the last two rate cut’s seeing financial institutions offering record low interest rates. With competition strong amongst lenders, you’re in a winning position to either secure a loan or review your current loan arrangements, and take advantage of the record low rates.