The Reserve Bank of Australia has today announced the official cash rate for June to remain at 1.50%. It was at this level since August 2016.
Holding the rate at record low is probably a sign of the benign economy environment in Australia. With the Australia dollar weakening against US dollar, having a stronger interest rate may work against RBA’s favour to get the country’s engine roaring.
RBA has kept a lid on lending policies in view of rampant mortgage borrowings in recent years. The very tight credit policies should continue to restraint property prices while banks may very well raise consumers mortgage rates.