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Homeowners expect the Reserve Bank of Australia (RBA) to hold the official cash rate steady in September, according to a survey conducted by Loan Market.
Of the 482 respondents, 51 per cent said they did not anticipate a rate reduction this month, while only 38 per cent said they expected the RBA to lower the cash rate
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Loan Market director Mark De Martino said he agreed with the majority and thought the RBA needed more time to assess the impact of the August rate reduction.
“A cash rate of 2.50 per cent has injected lots of activity into the home finance market over the past three weeks,” Mr De Martino said. “Our online enquiries were up nearly 30 per cent after the August rate reduction and this was a result of all lenders making the right competitive moves.
“The looming federal election will likely cause the RBA to wait and see who ends up in The Lodge and what economic promises they end up following through with. The RBA will want to work alongside the spending or saving commitments of the new government,” he added.
Six per cent of respondents said they expect the RBA to cut rates by 50 basis points in September, while only 5 per cent expect the central bank to increase rates.
