At its meeting today, the Reserve Bank of Australia unsurprisingly decided to leave the cash rate unchanged at 2.5 per cent.
It’s good news for borrowers as interest rates continue to sit at their lowest levels in over 50 years with the average advertised standard variable rate now hovering at just under 6.00% p.a. and discounted options sitting closer to 5.00% p.a.
According to the RBA the below trend growth of the Aussie economy is expected to continue in the near term as it adjusts to lower levels of mining investment. The unemployment rate has edged higher whilst inflation has been consistent with the medium-term target.
There is some positivity with house prices continuing to increase and business investment recording an unexpectedly strong rise in the June quarter. Additionally some signs of an improvement in global economic conditions and a lift in commodity prices are working in our favour.
Expert economists are divided on predictions for the remainder of 2013 with some in the know indicating we’ve hit the bottom of the cycle.
There is one thing for sure here and now; banks and lenders are looking for business with competitive pricing on the agenda as we hit the Spring quarter. The cost of money is down and borrowing is at its most attractive in decades.
For more information on the best finance deals in today’s lending landscape or how you can save money on your existing business or residential lending please call us on 07 3899 2866 or email us at: [email protected] for a complementary assessment of your borrowing options.