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Owners of real estate in Australia can continue to reap the benefits of the low official cash rate, as the Reserve Bank of Australia (RBA) left the rate unchanged at 2.5 per cent for another month.
At its latest meeting on October 1, the RBA board came to the decision to hold the cash rate steady, citing reasons of sluggish economic growth in both the global and domestic markets.
Lower levels of mining investment have led to gaps opening up in the Australian economy.
Unemployment has continued to rise throughout the year to reach 5.8 per cent during August.
All of these factors combined have led to low domestic growth, which is expected to be present in the economy while the country adjusts. At the same time, it can also open up opportunities for other industries to grow.
"At today's meeting, the Board judged that the setting of monetary policy remained appropriate. The Board will continue to assess the outlook and adjust policy as needed to foster sustainable growth in demand and inflation outcomes consistent with the target," said RBA Governor Glenn Stevens in a October 1 statement.
The RBA's decision has been welcomed by various industries in Australia. The Real Estate Institute of Australia (REIA) stated the decision will help to provide confidence to first home buyers - a type of buyer that has been dropping from the market in recent years.
"As a result of the easing monetary policy, housing affordability in Australia is now at its lowest level in a decade. Nationally, it now takes 28.7 per cent of the median family income to meet average loan repayments," said REIA Chief Executive Office Amanda Lynch in an October 1 statement.
"Rates, however, need to stay low to provide much needed confidence to first home buyers and increase building activity."
Loan Market Director Mark De Martino held a positive outlook for future cash rate decisions, stating there could be another cut in November and maybe early 2014 if "retail and construction don't step up to the plate".
"Record low interest rates are helping buyers and owners save money, but the stability of the RBA cash rate has been equally encouraging because it's allowing homeowners to budget more effectively around what their repayments may be," said Mr De Martino in an October 1 statement.
