This month the Reserve Bank of Australia (RBA) surprisingly kept interest rates on hold, when economists were predicting a rate cut.
But, at her subsequent press conference, Reserve Bank Governor (Michelle Bullock) made it clear that the next move for rates was down.
Of the RBA committee that voted on rates, six members voted for a rate hold while three voted for a cut.
The next RBA meeting is in August and a rate cut is looking even-more likely. If we get a 0.25 percentage point cut, someone with a $600,000 mortgage will receive about $90 a month in savings.
Rate cuts are also likely to put a rocket up house prices which have already risen for five months in a row, and analysts say the February rate cut was a turning point for the market.
Prices are rising at an annualised rate of almost 6 per cent a year, and it wouldn’t be surprising if that growth rate accelerated in response to more central bank rate cuts.
