April cash rate announced
As occurs at the beginning of most months, the board of the Reserve Bank of Australia (RBA) has gathered to announce any changes made to the official cash rate. This can impact interest rates, foster growth, moderate inflation and affect a wide range of financial factors, so is well worth paying attention to if real estate in the eastern suburbs of Sydney is in your plans.
In fact, as the general guiding light for interest rates set by banks, it can be fundamental to your home loan and property investment plans. And for this month at least, anyone with such plans will not have to change much.
Stability’s the word
In the 7 April announcement, RBA governor Glenn Stevens said that global economic growth was looking moderate, as was credit strength on our own shores. Lending to both investors and owner-occupiers wasn’t skyrocketing at the pace of investment funding in recent months, but it still appears strong.
The Australian dollar is still on the way down, particularly against American currency. However, Mr Stevens concluded the statement by saying that the cash rate may actually need to go down further, to keep our dollar’s value in line with goals, as well as inflation.
Malcolm Gunning from the Real Estate Institute of New South Wales was very pleased with the decision, as he believed that we haven’t seen the full spectrum of effects begun by the February cash rate cut to 2.25 per cent.
“A decision to cut interest rates would have seen us enter the territory of new record interest rate lows at a time of a very buoyant housing market,” he said.
No matter what your property goals are, clearly conditions are looking good at the moment. To discuss any real estate plans in the eastern suburbs, make sure to contact your local Ray White Double Bay agent.