The RBA is expected to slash the cash rate to 1% in coming months, but should that be a cause for celebration or concern?
Josh Frydenberg will unveil the Federal Budget, his first as treasurer, in Canberra tonight. With all eyes on Prime Minister Scott Morrison as he prepares to announce the date of the next federal election, tonight’s Budget is an important step in the Coalition’s bid for re-election.
Although the RBA has left the cash rate unchanged since August 2016, there is a growing likelihood that the cash rate will move lower later this year.
The RBA left the cash rate on hold at 1.5% at its March meeting today. but there is a growing possibility that rates could fall later this year.
The interest rate earned on “lost” bank accounts for the 2017-18 period was 2.13%. The average interest rate on a transaction account over the same period was a measly 0.11%.
The RBA has looked past the housing downturn which has gathered some momentum over the past three months, to hold the cash rate firm at their first meeting this year.
The longest period of interest rate stability on record has extended out another month, with the RBA keeping the cash rate on hold at 1.5% where it has remained since they cut the cash rate by 25 basis points in May and August of 2016.
About $240 billion of interest-only loans is scheduled to roll over to principal and interest in the next two years. Here’s how to avoid ending up in mortgage stress.