The Reserve Bank released their June Board Meeting minutes with clear indications that the interest rate will remain at the current levels for a long time. The interest rate has been on hold at 2.5% for the ninth straight meeting, as the RBA is confident that the country’s inflation will remain at the 2 – 3% threshold.
The economy has gradually grown by 1.1% for the first quarter, extending the country’s impressive economy run to 90 quarters without a recession. Several factors may affect the current interest rate, and may even push for a rate cut, as wage growth remains soft at 2.6% and house prices have slowed in several areas. Keeping the interest rates low is good news for homeowners as mortgage repayments remain at affordable levels.
Read more about this on Pete Wargent’s Blog.