The RBA met for the final time for 2021 on Tuesday 7th December and announced that interest rates will remain on hold at 0.1%. Interest rates remain at a record low for the 13th consecutive month.
In it’s latest Media Release, Board Governor, Phillip Lowe, stated that the decision to keep interest rates at this record low was based on a recovering Australian economy after the setback caused by the delta variant outbreak in various parts of Australia.
The Board also made a statement about housing prices:
“Housing prices have risen strongly over the past year, although the rate of increase has eased over recent months”.
The RBA stated that it was committed to maintaining highly supportive monetary conditions so that a return to full employment and steadying inflation is in its target. In their media release, the RBA explained that “housing credit increased by 6.7 per cent over the past year, but, more recently, the value of housing loan commitments has declined from high levels”.
The Board mentioned that it will not increase interest rates until inflation is sustained within the 2 to 3 per cent target range but this is dependent on wage growth. As the economy is recovering, this is likely to take some time. The Board stated that it is prepared to wait to increase interest rates until recovery has stabilised.
With low interest rates and if the time is right time for you to start looking for a home, Wendy Chamberlain Buyer and Seller Advocate can help you navigate this journey.
Looking to buy in Melbourne and sick of missing out at auction? Talk to me about how I can help you buy your new home faster, for less.
Ask about our Home Buyer Search and Acquisition Service, where we do all of the legwork on your behalf to MAKE IT EASY to secure your new home.
To book a free 30-minute consultation, simply click here and choose a time convenient to you. Alternatively, give me a call on 03 9686 2288 to discuss how I can help.
Give me a call on 03 9686 2288 to discuss how I can help. I offer a free consultation, so why not call today?
