When the official cash rates started to drop a few years ago, no one would have imagined that they would still be this low several years down the track. However, they are! Which is great for investors, home owners and first-home buyers alike. But the best news of all is that the cash rate is showing very little sign of increasing anytime soon. Bring on the investments we say. 

It seemed there were no surprises when the Reserve Bank of Australia recently decided to leave the official cash rate on hold again, leaving it at a record low 1.75 percent. Yet, a recent statement by Governor, Glenn Stevens, which accompanied the RBA’s decision to leave interest rates on hold, has managed to spark the attention of many industry players. 

 But what has really got everyone’s attention is the change to the closing paragraph -

 “Taking account of the available information, the Board judged that holding monetary policy steady would be prudent at this meeting. Over the period ahead, further information should allow the Board to refine its assessment of the outlook for growth and inflation and to make any adjustment to the stance of policy that may be appropriate.”

In a recent Property Observer article by Shane Oliver’s, he writes, “More importantly, changes to the closing paragraph in the RBA’s Statement have arguably softened its neutral bias and opened the door to another easing.” 

We couldn’t agree more! Which brings us to point three:

And, well… since a rate hike is most unlikely, the “adjustment” that the RBA is referring to is presumably another possible interest rate cut. Is it not? 

With this in mind, it does seem inevitable that the RBA will cut rates again later this year, just as everyone is predicting, including Shane Oliver. Yet, by just how much is anybody’s guess. That being said, most industry experts are suggesting that we can expect to allow for two more 0.25 percent rate cuts this year; the first being in August 2016.

When it comes to finding Brisbane properties that are ripe for the picking, there is no one better than Hannah and the team at HSBP. Call today on 0419 782 133 to find out how we can help take your property portfolio to the next level.