The Reserve Bank of Australia has continued its holding pattern, keeping interest rates steady at 1.50 per cent at its September board meeting.
REINSW president, Leanne Pilkington, says there’s significant rate movement irrespective of the RBA at the moment.
“There is no compelling reason for the RBA to adjust the office cash rate at this time,” she says.
“Of greater interest is the approach the banks are taking with their lending terms. Honeymoon interest rate deals are in vogue to attract first home buyer attention, but it’s necessary to crunch repayment numbers based on the actual rate you’ll be paying once the honeymoon is over.
“On the flipside, Westpac’s pre-emptive strike to lift rates, and the subsequent ‘please explain’ demanded by the new Treasurer, is cause for concern,” Pilkington continues.
The RBA cut interest rates by 25 basis points two years ago in August 2016 as well as May 2016. There were no changes to interest rates in 2017.
The RBA will next meet on Tuesday, 2 October 2018.