The Reserve Bank has continued with the recent trend and decided to leave official interest rates on hold at 3 per cent at its meeting this afternoon.
This is the third consecutive month of steady interest rate settings by the Bank with the result widely expected.
Although the Bank remains on watch for any signs of deterioration in economic activity, recent data has been reasonably positive. As a consequence, the general economic outlook remains relatively optimistic both locally and internationally.
Housing markets have been a beneficiary of low interest rates this year with forward indicators such as auction clearance rates clearly ahead of last year results.
“This years increased home buyer activity is set to be maintained into winter driven by historically low interest rates and rising confidence”, says Dr Andrew Wilson Senior Economist for Australian Property Monitors.
“With strengthening housing markets and a generally solid economy, rates are expected to remain on hold at least over the near-term”.