Orium Finance Contact 02 8330 3700

May interest rate market update

May interest rate market update

The Reserve Bank of Australia (RBA) has surprised the market with a 0.25% drop in the official interest rate, taking the cash rate down to an all-time low of 1.75%. The RBA has viewed the recent bout of inflation as a risk to the economy and has taken action to stimulate further growth.

In what has been a shift in both economic data and the RBA’s stance of maintaining a steady cash rate, there is now a reasonable chance of another rate cut in the future.

“Interest rate moves are a bit like cockroaches — if you see one there is usually another one lurking nearby”
Dr Shane Oliver – Head of Investment Strategy and Chief Economist, AMP Capital.

It appears that the RBA is targeting two outcomes with its monetary easing strategy – to drive the dollar to lower levels and stimulate inflation and growth. A lower Australian dollar will help to drive the export market by making goods and services more competitive to overseas buyers. We’ve already seen an increase in the education and tourism sector. As worldwide growth is low, Australia has to increase market share rather than just relying on organic growth.

Speak to our team today to see how you can achieve your financial goals.

One of our mortgage brokers will contact you to discuss the following:

  • Get to know your financial objectives
  • Help you to understand your borrowing capacity
  • Take you through how we can assist you with your finances

We look forward to hearing from you – please enter your details and we’ll be in touch shortly

"*" indicates required fields