Individuals who have taken out mortgages on property in Burnside will no doubt be glad to hear that the official cash rate will remain at 2.5 per cent for a while longer.
The Reserve Bank of Australia (RBA) monetary policy committee met earlier this week (December 4) and decided that current settings should remain in place for the time being.
There had been speculation over whether another rate cut would be implemented, but the earliest this can now occur is in February 2014.
RBA governor Glenn Stevens made the announcement, explaining that the Australian economy has been growing slightly below trend recently – but some sectors are helping to boost sentiment.
There has been increased demand for finance by households, while the property market has also strengthened significantly over the past few months.
A number of groups responded to the news, including the Housing Industry Association, which believed the lack of action was the most appropriate decision – for now.
“Australia’s rebalancing act with economic growth is only at a nascent stage and the RBA needs to stand ready to lower interest rates further if the economy lacks momentum heading into 2014,” said the group’s chief economist Harley Dale.