The RBA cash rate has just hit a record low at 1%
July 2, 2019 Uncategorised
The outcome of the monthly RBA board meeting was released today, resulting in the second consecutive cut of 25 basis points. This move was widely anticipated by the financial markets and economists. Approximately 68% of industry representative expected the cut.
Even though the cash rate is now at an all-time low, there is still anticipation for a third rate cut occurring later in the year.
The objective for this decision is to lower unemployment, boost wage growth and push inflation back to target, which a single rate cut could not solely do.
This is great news for homeowners. Lower mortgage rates partnered with an ease of serviceability for home loans are likely to stimulate an improvement in housing market activity.
Mortgage holders are likely to now see the impact of considerable savings as a result of the consecutive cash rate cut.
We’re now extremely optimistic this will contribute to the kick-start of a stalling market.