RBA rate decision is the perfect time for finance check-up
FOLLOWING the Reserve Bank of Australia's decision last week to leave the cash rate on hold at 2.75%, Australian borrowers have been urged to review their finances and use the next few weeks to prepare themselves for the new financial year.
While the decision to leave the cash rate on hold would not appear to be a surprise to economists - with only one out of 25 surveyed by Bloomberg predicting a cut - Mortgage Choice spokesperson Belinda Williamson said Australians with a home loan should take the hold decision in their stride.
According to Ms Williamson, borrowers could view the rate hold as an encouraging sign ahead of the new financial year, as it indicated that the Reserve Bank of Australia was keeping a watchful eye on the positives emerging in the economy.
"Following last month's cash rate cut, and the culmination of previous cuts, we seem to be witnessing some positive signs in the economy," she said.
"Indicators of this in the property market include improvements in housing finance commitments, building approvals and auction clearance rates.
"Plus, we are seeing the unemployment rate remain relatively steady, signs of life in retail sales and a fall in the Australian dollar, which should provide breathing space for many exporters and help lift business confidence.
"Keeping that all in mind, we want borrowers to also look out for the positives signs in their own personal finances.
"Where things might not look as rosy we would encourage people to make changes now to improve their financial situation so that they start the new financial year with a more optimistic outlook.
"There is likely to be another rate cut at some point this year but borrowers need not wait for this before making changes, particularly as the beginning of the next financial year, July 1, is less than one month away.
"Getting a regular health check on your home loan and other areas of your finances may be the key to ensuring you are better prepared for whatever may come your way."