Rates steady on Cup day

Property Investor

Interest rates have again remained steady at the record low of 2.5 per cent – the same rate that has been since August last year.

In the past the RBA has often made interest rate moves on Melbourne Cup day, but not this time. 

That was expected by most economists and rates are expected to stay unchanged for at least the rest of this year.

Paul Bloxham from HSBC told News.com low interest rates were achieving the goal they were aiming for. 

“After a long period in which Australia was building mines and too few houses, there is now a strong pipeline of housing construction,” he said. 

There is plenty of discussion about the low rates causing too strong a house price surge, and the RBA is currently working with regulators on changing lending rules to intervene on the rapid rise in loans to property investors. 

Mr Bloxham said introducing these new regulations to rein in house prices in Melbourne and Sydney would allow interest rates to stay unchanged for the better part of next year.


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