Well here we are, it’s almost Christmas! Today’s Reserve Bank meeting was the last for the year, and the board decided to leave interest rates unchanged (http://www.rba.gov.au/media-releases/2013/mr-13-25.html).
The RBA statement continues to note a mixed outlook, with growth still below trend, unemployment edging higher, and weak public spending expected. However household and business sentiment is improving, demand for finance by households is increasing and retail sales are growing.
At this stage it seems the RBA’s biggest concern is the Australian dollar, which remains “uncomfortably high”. The Reserve Bank would prefer for economic growth to be driven by a weaker dollar rather than further rate decreases and they have made a number of speeches in the past month to this effect.
With the official cash rate on hold, home loan variable rates are expected to be stable however a number of lenders are starting to put up their 3 and 5 year fixed rates. Contact us at Golden Eggs Home Loans today if you would like to look into at refinancing to take advantage of the current low rates.