The likelihood of a May interest rate cut
Low interest rates are helping to put the economy on the right path but some sectors are still struggling, according to the outcome of today's Reserve Bank Minutes of the Monetary Policy Meeting in April
The Reserve Bank of Australia (RBA) has kept interest rates on hold at 3.0 percent, since slashing rates down by 1.75 points between November 2011 and December 2012. The RBA's view to this point has been that the full effect of rate cuts had not yet taken a full hold on the economy. However, the RBA does believe that the high dollar and declining growth in the mining industry are still obstacles for the economy and further rate cuts may be necessary to overcome this, according to The Australian.
And with inflation expected to stay on target with the RBA's expectations of 2 to 3 percent, there is still room to make further cuts if it sees suitable.
A report by the Housing Industry Association has shown an increase in the number of new home loans for February and says the market is on the right track. Reports also show that consumer confidence is above average levels and retail sales are showing strong growth.
It's uncertain whether there will be another rate cut as soon as May and some economists now beleive further cuts are not a certainty. Despite this Australians can still find a better deal on their mortage through a market comparison of the best home loan interest rates see here.
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