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RBA Cash Rate Feb 2017 & what it means for you

February 7, 2017  |  #Financial Planning

With the new year underway, we’ve come to the first rate news for 2017. Today’s rate announcement and the thoughts on why the Reserve Bank of Australia has made this decision follow.

The RBA has opted to leave the official cash rate on hold at 1.5%.

As widely predicted the RBA has kept rates on hold as it continues to look for the balance between containing house price growth and managing below target inflation levels, record low wages growth and slow economic growth.rates-on-hold-17-2-7

Wondering if you have the best rate and mortgage for your situation? Get in touch and we will check for you.

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Will my rate change?

Even though the official cash rate has remained unchanged, lenders can move their rates independently, so you may see a change to your rate.

What does the future hold?

That depends on who you speak with, there are a number of different views. Inflation plays a big part in these decisions so keep an eye on that. If economic growth indicators in our country are sluggish the pressure will be to cut; however, foreign policy and our relative dollar value can have the opposite effect.

Is now the time to fix my mortgage rate?

That all depends on your individual circumstances and preferences. Working with a mortgage adviser can be very helpful in making that type of a decision for a number of reasons:

  • they stay on top of current rates, mortgage products and offers and have strong negotiating power
  • they can help you understand your current situation more clearly
  • when partnered with a financial adviser, you will become a lot more clear on your goals and objectives which can impact the type of mortgage product that suits you best
  • changing lenders can be hard work, an adviser will do much of the legwork and support you through that

Of course, our lending team are across all of these changes as they occur. We are always happy to speak to you at any time to ensure you still have the right financial solution for your current circumstances. Learn more about our work.

What you need to know

This information is provided by Invest Blue Pty Ltd (ABN 91 100 874 744). The information contained in this article is of general nature only and does not take into account the objectives, financial situation or needs of any particular person. Therefore, before making any decision, you should consider the appropriateness of the advice with regards to those matters and seek personal financial, tax and/or legal advice prior to acting on this information. Read our Financial Services Guide for information about our services, including the fees and other benefits that AMP companies and their representatives may receive in relations to products and services provided to you.