Good news for mortgage holders this week, with the RBA saying “it’s reasonable to expect an extended period of low interest rates”.

Figures released on Wednesday show that core inflation, the RBA’s preferred measure, is currently at 1.4%.

However, Reserve Bank of Australia (RBA) Governor Philip Lowe says it is highly unlikely the RBA will contemplate higher interest rates until it’s confident that inflation has returned to 2-3%.

“Whether or not further monetary easing (aka further rate cuts) is needed, it is reasonable to expect an extended period of low interest rates,”

“On current projections, it will be some time before inflation is comfortably back within the target range.”

Will the RBA cut rates further this year?

The RBA meets on the first Tuesday of each month, however it’s appearing unlikely that it will cut rates further this year.

That’s because June quarter inflation figures narrowly beat out the market’s expectations (+0.5.%) with a rise to 0.6%.

As a result, most experts are predicting that will be enough to postpone another RBA rate cut for the time being. But doesn’t rule one out should the economy not respond as the RBA expects.

Get in touch

If you want an update on what the RBA’s latest comments on long-term low-interest rates mean for your current home loan situation, then get in touch.

We’re following the market closely and will be happy to run you through some mortgage and refinancing options.