Hold again: RBA November 2017 decision

The RBA cash rate decision came out at 2.30pm today - and rates were held again after the Cup Day meeting.

It was the odds on bet of the day.

1300HomeLoan John Kolenda said it has now been seven years since the RBA lifted its cash rate with the last increase being on the day that stops the nation in November, 2010. They have cut on Cup Day in the interim.

The banks of course continue to make their own moves.

It noted house markets continued to cool.

The bank's last move saw it go to 1.5 percent at the August 2016 meeting, so rates have been held steady for 15 meetings.

It is not the longest run of steady rates as there were 16 meetings (inclusive) between their August 2013 meeting and December 2014 where they held at 2.5 percent. There was another run of 16 meetings between July 2002 and October 2003 where rates were held at 4.75 percent.

The CoreLogic head of research Tim Lawless noted a slowdown in housing market conditions has helped to alleviate some of the pressure to raise the cash rate. 

"The fresh round of macro-prudential policies announced in late March have resulted in tighter credit policies and premiums on mortgage rates for investors and interest only borrowers. 

"Tougher lending conditions have arguably had a similar effect as a lift in the cash rate, except the effect is more focussed on slowing investment activity across the housing sector while low interest rates continue to provide a broader and much needed economic stimulus." 

He said since the latest policy announcements from APRA at the end of March, the monthly and rolling quarterly growth rate across Australia’s hottest housing market, Sydney, has turned negative.

The annual growth rate has more than halved, from a recent peak of 17.1% over the twelve months ending May 2017 to just 7.7% over the year ending October. 

He noted housing market conditions have also slowed in Melbourne, but not as sharply as in Sydney.  

The RBA will next meet on Tuesday, 5 December 2017.

 

Tags: 
Mortgages Rba/lowe/rates

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