11 Nov Planning ahead: RBA says expect long-term low interest rates
Good news for mortgage holders this week, with the RBA saying “it’s reasonable to expect an extended period of low interest rates”.
Figures released earlier this year show that core inflation, the RBA’s preferred measure, is currently at 1.9%.
However, Reserve Bank of Australia (RBA) Governor Philip Lowe says it is highly unlikely the RBA will contemplate higher interest rates until it’s confident that inflation has returned to 2-3%.
“Whether or not further monetary easing (aka further rate cuts) is needed, it is reasonable to expect an extended period of low interest rates,” he said in a speech.
“On current projections, it will be some time before inflation is comfortably back within the target range.”
Will the RBA cut rates further this year?
The RBA will meet again next month for the final time this year. It’s appearing increasingly unlikely that it will cut rates again but who knows, stranger things have happened.
Most experts are predicting there will be further cuts, but speculation is rife it won’t be until 2020.
Get in touch
If you want an update on what the RBA’s latest comments on long-term low-interest rates mean for your current home loan situation, then get in touch.
We’re following the market closely and will be happy to run you through some mortgage and refinancing options. Why not follow us on Facebook?
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.