Interest Rate Update – July 2017

Interest Rate Update – May 2017

Interest Rate Update – April 2017

Interest Rate Update – October 2016

No change

The Reserve Bank of Australia (RBA) has just announced it will maintain the official cash rate at 1.50%.

The price of oil rose to almost $US50 a barrel last week, following a decision by the Organisation of the Petroleum Countries (OPEC) to cut production for the first time in eight years.

This, together with some recent solid economic results, has influenced the RBA to hold off any changes to the cash rate in the short term.

The next key financial data will be the release of the quarterly inflation figures on 26th October – a very good guide for the RBA to use to decide if to further reduce the cash rate in November.

For more information, or if you would like a free review of your residential, commercial or SMSF loans against other competitive products in the market please contact Peter, David or Simon via this email, our phone: (03) 9882 2500, or visit https://www.firstpointgroup.com.au

Interest Rate Update – August 2016

Cash Rate – Reduced to 1.5%

The Reserve Bank of Australia (RBA) has just announced it will reduce the official cash rate to 1.5%.

In a finely balanced decision the RBA would have been particularly influenced by the results of the June quarter inflation rising only 0.4% and hence only 1.0% over the twelve months to the June quarter 2016. This compares with a rise of 1.3% over the twelve months to the March quarter 2016.

With inflation running well below the RBA target band of 2.0%-3.0% and the labour market having lost momentum over recent months the RBA felt it was time to move rates down again.

The RBA will update its forecast outlook in the Statement of Monetary Policy on Friday 5th August which will provide some reasoning behind their “cut” decision and paint a picture of the near future.

As we see interest rates continue to fall, the next 12 months will be very interesting times. Despite three cash rate cuts of 25 basis points each since March 2015 there has been little benefit to the economy and other macro tools are likely required to refire the economy. Two things are for sure:

Interest rates are historically low so borrowing is very cost effective

There is not much left for the RBA to play with…

For more information, or if you would like a free review of your residential, commercial or SMSF loans against other competitive products in the market please contact Peter, David or Simon via this email, our phone: (03) 9882 2500, or visit https://www.firstpointgroup.com.au/

Interest Rate Update – July 2016

Cash Rate – No Change

The Reserve Bank of Australia (RBA) has just announced it will maintain the official cash rate at 1.75%.

Notwithstanding the uncertainty surrounding both the Australian election outcome and the aftermath of Brexit the RBA has a preference to await the results of the June quarter inflation figures (due later this month) before considering its next move. The majority of Economists are currently predicting the RBA’s next move to be a reduction to the Cash Rate in August.