As expected, interest rates have been kept on hold for the month of August. Sighting an economy that is still not full steam ahead, the interest rates have been left at 2.5%
The RBA rationality behind this is that unemployment has not improved across Australia, and that does put real pressure on affordability. With consumers struggling to spend money in the economy, there is a higher chance that an interest rate rise may put too much financial pressure on people and create issues.
On the property front, rates on hold will be a welcome sign for investors with people looking to get in to the market using these record lows as a way of entry. Consumers have been buying up property, and whilst clearance rates are high, it's the figures in which consumers seem willing to spend which is most astounding.
As we gear up for the Spring market, the debate will continue if rates should be increased. We will have to wait and see, but for now, the rates are on hold, and access to money is relatively cheap compared to previous times.