Tuesday 7th July 2015Global Issues to Keep RBA Rates on Hold: 1300HomeLoan
The Greek debt crisis and concerns about the economic performance of Australia’s largest trading partner, China, will keep the Reserve Bank of Australia (RBA) on the interest rate sidelines for a few more months, says mortgage broker network 1300HomeLoan.
1300HomeLoan Managing Director John Kolenda said as expected the RBA left the cash rate at the record low of 2.0 per cent at its July meeting with domestic economic data and global events pointing to continuing interest rate stability from the central bank.
“With a new wave of economic uncertainty sweeping the world headed by the crisis in Greece, the RBA will be wise to store away some of the ammunition it has left,” Mr Kolenda said.
“The situation in Greece has been helping to lower the Australian dollar which saves the RBA from taking action.
“We still may see another rate cut before the end of the year if domestic economic conditions decline and unemployment rises.
“It’s a good situation for mortgage holders as they can expect official rates to remain low compared to historical averages for the next few years.”
Mr Kolenda said with official rates on hold, home owners should be checking their mortgage rates to ensure they are getting the best deal from their lender.
“It’s always worthwhile, particularly in the current competitive lending environment, to sit down with an experienced mortgage broker to look at your home loan and determine whether it is worth shopping around for a better deal,” he said.