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ISCOVER
Staff Reporter
A majority of homeowners expect the Reserve Bank of Australia (RBA) to leave the official cash rate on hold when the board meets next week.
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According to a new survey conducted by Loan Market, 53 per cent of respondents anticipate the current cash rate to be maintained at 3 per cent.
Loan Market spokesperson Paul Smith said that even with the highest level of unemployment since November 2009 and the slowest rate of home loan growth in 36 years, there were positive signs in the economy that were giving homeowners confidence.
“Despite a weaker than expected inflation rate, homeowners still aren’t convinced the RBA will see the need to lower the cash rate,” Mr Smith said.
Thirty-nine per cent of the 436 homeowners surveyed predicted that the RBA will lower the official rate by 25 basis points on Tuesday.
“There have been some positive numbers coming out of the real estate industry – auction clearance rates are showing that those who want to purchase or sell have a heightened ability to do so” he said.
“Interest rates are currently at historic lows and fixed interest rates continue to fall which indicates some lenders are anticipating further rate cuts in the future. Homeowners should make sure they’re taking advantage of these low rates so that they can offset any other rising expenses.”
Mr Smith said the percentage of homeowners predicting no rate cut dropped by 4 per cent from the same survey in April and was the same result of the March survey.
“There’s clearly evidence that homeowners are paying attention to the key factors that influence the RBA’s rate decision and can correctly predict the monthly rate decisions.”
