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RBA announces interest rate decision

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June 2018 

The Reserve Bank of Australia has announced its decision following its board meeting today.

As predicted by many economists, the June cash rate will remain at 1.5%, with the record low rate showing little sign of changing.

While the RBA has said in the past the next move will be a hike, experts are not expecting this until next year.

South West Credit CEO, David Brown commented on this decision. He said, “The announcement is of little surprise given some of the underlying weaknesses still prevalent in the Australian economy. A 0.4% decline in the Australian housing market in the year to May, weak wages growth of 2.1%, high underemployment of 8.3% and core inflation at the lower bound of the RBA target range at 2%”.

While the stable rate market is a positive for home loan borrowers, it continues to put strains on those who depend on interest income in their retirement.