The Reserve Bank of Australia (RBA) announced yesterday its decision to maintain rates at 3.25%. This dispelled earlier speculations of further cuts on Melbourne Cup Day.
RBA Governor Glen Stevens said in a statement that, "with prices data slightly higher than expected and recent information on the world economy slightly more positive, the Board judged that the stance of monetary policy was appropriate for the time being."
The outcome of the US elections, and changes in the European and Chinese economy are key global factors that could affect the rates in the future. At the home front, the RBA has decided to monitor the effects of the previous cuts in the meantime. This wait-and-see approach may keep the overnight cash-rate at its current level until 2013, according to some observers. However, this may change should the economy take a further dip in the coming months, wherein further cuts may be expected.
Do you have a mortgage? With rates at record lows, it means that you could get better rates and reduce your monthly payment today. Alternatively, you may continue with your current payment schedule, and potentially take years off the term of your loan. Find out how much you can expect to pay by contacting our qualified advisors at Rate Detective.