Tuesday, 23rd October 2018

Interest Rates to Remain Level

  • Staff
  • 13th December, 2015
Interest Rates to Remain Level

The RBA has again voted to leave the official cash rate unchanged for another month, with the resultant on-flow to mortgage rates.

At the last RBA meeting, held on 1st December 2015, the board decided to leave the official cash rate unchanged.

This was die to a number of factros, but included a stable, yet low inflation rate, falling commofity prices resulting in a higher Australian dollar, and a slow down of the earlier run away pricing of housing in Melbourne and Sydney.

It is hoped that leaving the cash rate would help to furhter inprove the economis position of the country.

As seen in recent times, however, the banks may continue to consider their own reasons for increasing ingterest rates, specifically on residential property mortgages. While the RBA decision provides a reason for them to leave mortgage rates where they are, the banks may take other factors into account when assessing their rates. These factors include risk assessment, profit margins and returns on dividends, and losses or gains in other areas of their banking.

No further update on the rate from the RBA is due until February when they board next sits. It is ecpected that so long as there is no significant change between now and that time that the rate will remian the same again.

About the Author

Mrs Mortgage is, in fact, a real, live person better known to her friends as Jennifer Schelbert.

Jennifer is a director of Mrs Mortgage and is also a licensee of Choice Aggregation Services - she is also a full member of the Mortgage and Finance Association of Australia (MFAA).

Jennifer Schelbert Credit Representative number 398747 of Mrs Mortgage Corporate Credit Representative number 396742 (ACN 063 827 216) of BLSSA Pty Ltd (Australian Credit License No. 391237)

Disclaimer: This document is for information purposes only, and must not be relied upon as a substitute for professional services or legal advice.

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