The Reserve Bank Board noted that conditions in established housing markets had continued to vary considerably. There had been clearer signs of an easing in conditions in the Sydney market but less so in Melbourne, where prices had continued to grow strongly. Borrowing for housing had continued to outpace growth in incomes, although the composition had shifted towards owner-occupiers, with higher interest rates for investors in housing reflecting the ongoing effects of APRA’s recent measures to strengthen lending standards in this area.
Taking into account all of the available information, and the need to balance the risks associated with high household debt in a low-inflation environment, the Board judged that holding the stance of monetary policy unchanged would be consistent with sustainable growth in the economy and achieving the inflation target over time.
There is no better time to take stock of your financial position and structure your current debt to take advantage of the low-interest-rate environment.
Carl Thompson – Commercial Lending Specialist, Strategic Investor Group