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.