Interest Rates Stable
The Reserve Bank of Australia (RBA) has forecast that the cash rate will remain at a record-low 2.5 per cent for at least one more year.
The board agreed that a period of stable interest rates was the most sensible course of action, according to the minutes of its July 2014 meeting. “In Australia, market expectations of future cash rates were little changed over the past month and the cash rate was currently expected to remain unchanged for at least the next 12 months,” the RBA board said.
This is great news for home owners as it provides a degree of certainty in the household budget for the time being.