If you're looking to buy a property in Brunswick, securing your mortgage at a good rate is something you'll be aiming to do. However, knowing which way the interest rate is heading can be tricky if you're not sure where to look. In these circumstances, it'll pay off to keep an eye on the monthly cash rate decision set by the Reserve Bank of Australia (RBA). This percentage holds powerful sway over all monetary movement in the economy.
On February 2, the RBA decided that it would keep the cash rate at the historical low of 2 per cent. This is the eighth month in which there has been no movement in the rate since its initial cut from 2.25 per cent in April. So, what can we gather from this and what will it mean for the future?
The accompany statement made by RBA Governor Glenn Stevens explains the board's decision, pointing to factors in the labour force, inflation and the real estate market. Since the end of Australia's mining boom, low interest rates have acted as a growth stimulant in other sectors to pick up this slack.
"In Australia, the available information suggests that the expansion in the non-mining parts of the economy strengthened during 2015 even as the contraction in spending in mining investment continued", confirms Mr Stevens. He also notes that employment levels have risen while business conditions shifted to levels that are above average.
"Continued low inflation may provide scope for easier policy, should that be appropriate to lend support to demand," says Mr Stevens. As governmental measures have tightened lending standards, a cash rate cut might just be something we'll see in the coming months.
These are interesting times for both the financial and property market. If you're looking to take advantage of these rates and buy real estate in Brunswick, get in touch with Ray White Brunswick.