Another month, another cash rate decision and yet another ongoing period of rate stability. Industry commentators, home owners and potential buyers alike have all been clamouring since the start of June to predict just where the cash rate would go this month – and the answer is nowhere.
Of course, Reserve Bank of Australia governor Glenn Stevens' announcement that the cash rate would stay at the historic low of 2 per cent for another month is fantastic news for anyone involved in the property market. Those who want to own a home Australind have an added reason to jump onto the property ladder, while investors thinking about securing a Bunbury rental may now have the crucial impetus they need to do so.
Mr Stevens' comments that a slightly sluggish economy means low interest rates will remain important will no doubt inspire much speculation about whether the cash rate would fall further in the coming months. Housing Industry Association chief economist Dr Harley Dale elaborated.
"Regardless of whether the interest rate gun stays in the rack or not, the key is that super low borrowing costs are here to stay throughout 2015/16," he said in a 7 July statement.
"That will help support housing activity at a time when there is scant evidence of strong momentum elsewhere in the domestic economy."
Though each cash rate decision tends to also prompt concern about about Australian property prices, Loan Market chairman Sam White explained that most of the issue is centred on the New South Wales capital.
"Those who don't live within 50 kilometres of the centre of Sydney – especially those who don't live in NSW – will be wondering what all the fuss is about," he said on 7 July.
Rather, in a statement that will no doubt prompt many more enquiries about property management in Bunbury, he said Western Australia in particular actually needed more investors. With the cash rate predicted to stay low for some time yet, it may be worth thinking about.