The Reserve Bank of Australia has left the cash rate on hold at 2% today, heading into the first month of spring. This is the fourth consecutive month the central bank has decided to keep rates steady.
The CEO of Mortgage Choice, John Flavell
says a strong bounce back in consumer sentiment and sustained property price growth has encouraged the RBA
to leave the official cash rate alone.
“Over the last month, the domestic economy has shown signs of improvements, with consumer sentiment and property prices both on the rise,” he said.
“According to the latest data from the Westpac Melbourne Institute of Consumer Sentiment, confidence climbed 7.8% in August to 99.5. While there were no significant milestones or events to warrant the bounce back in confidence, it is likely that ongoing positive news around house prices may have buoyed confidence.
“Over the last quarter, property values have continued to climb, with prices soaring 5.5% across the combined capital cities.”
However, Flavell remains on the fence about future rate decisions.
“Of course, just because the Reserve Bank has decided to leave the cash rate on hold again today, doesn't mean we can rule out further cuts in the future.”