As the Reserve Bank of Australia gets ready for its monetary policy meeting on August 11 and 12, the financial markets are more and more expecting the cash rate to go down. A big drop in inflation, along with the RBA’s own forecasts, has made the right conditions for a policy change.
Inflation Trends Point to Easing
The Consumer Price Index (CPI) for the June quarter showed that prices were still falling. The trimmed mean fell to 2.7 %, while the headline CPI stayed at 2.1 %. These numbers show that both core and underlying inflation are now in the RBA’s preferred target range of 2 to 3 %.
This trend of easing has gotten rid of the main reason not to cut rates. The RBA had been careful up to this point, waiting to lower rates until inflation showed a steady decrease. Since the most recent numbers are in line with what was expected, many market analysts are looking forward to a change in policy direction at the next meeting.
BeSmart Finance, our brokers have already walked that road with hundreds of clients. Whether you’re a first-time home buyer or a seasoned investor, having an advocate who knows the ins and outs of hardship options can smooth the journey and protect your long-term goals.
RBA Predicts More Changes to Interest Rates
If the cash rate goes down, it could make it easier for homebuyers and people who already have mortgages to borrow money. For a lot of people, the change could mean they can borrow an extra $9,000 to $10,000, depending on their income and the terms of their loan. This is a great chance for people who are thinking about refinancing or buying a home.
The team at BeSmart Finance regularly partners with landlords and entrepreneurs, and we know how to pair these clients with lender options that fit their bigger financial picture.
Mortgage Brokers Helping Clients Get Ready Early
Lower interest rates usually make buyers feel better about buying. Acting quickly, before demand goes up, can give clients a better chance to negotiate. This is especially helpful for first-time buyers who may have less money to spend and need help making clear financial plans.
Investor Activity Expected to Pick Up
The expected rate cut could be the start of a larger cycle of easing for investors. Getting into the market at the right time before this cycle could be good for the long term. As it becomes easier to borrow money, the value of assets may also go up over time, especially in property segments that focus on growth.
The unemployment rate is steady at 4.2 %, so the economy as a whole should be able to handle a small cut in interest rates without losing stability. This, along with calls for renewed economic growth, has made the case for a policy change stronger.
BeSmart Finance stands ready to lend a hand with your repayments, keep you awake, or simply clarify how the hardship rules apply for loans. Our trusted mortgage specialists will comb through your existing loan, advocate with lenders in your name, and hunt for relief paths that suit your circumstances.Give us a ring on 408659819, and we’ll walk you through all your loan options, or schedule a no-cost consultation so we can show you how to reshape your home or investment loan with real certainty.
