Attention homeowners: the Reserve Bank of Australia (RBA) has recently decided to maintain the cash rate target at 4.10 per cent. This choice follows a sequence of cash rate hikes implemented since last year, all to foster a more sustainable balance between supply and demand in the economy.
While inflation in Australia, though still elevated, has passed its peak, it is anticipated to remain high due to increasing prices for various services and persistent rent inflation. This development carries significant implications for potential real estate buyers, investors, and those contemplating home loans. Increased inflation can place stress on people’s actual income and impede household consumption growth, potentially influencing the ability to secure home loans and impacting the overall real estate market performance.
The RBA is determined to return inflation to its target range within a reasonable timeframe. They recognise that high inflation impacts savings, strains household budgets, and complicates business planning and investment.
According to the most recent data, inflation will soon be around 2-3 per cent. The RBA closely monitors worldwide economic trends, consumer spending patterns, labour market, and inflation outlook.
Closely monitoring market updates is crucial for those planning to buy or refinance their home loans. They must understand how market conditions impact their financial situation and future financial decisions.
At Lendstreet, we recognise the significance of staying informed about the latest economic and monetary policy developments. For up-to-date information and valuable home loan and real estate guidance, turn to Lendstreet. Subscribe to our newsletter here or book a free no-obligation one-on-one consultation with our trusted mortgage brokers here.