MAY RBA CASH RATE ANNOUNCEMENT SHARES LIMELIGHT WITH STAR WARS DAY

The first Tuesday of May this year fell on May the 4th, which meant two things:

  • The Reserve Bank of Australia Board held a meeting to set the target cash rate for the month
  • Star Wars fans around the world celebrated ‘Star Wars Day’ and voiced “May the Fourth be with you” many times over

No doubt there were countless movie marathons, lightsaber duels and costume contests staged! But now that the Star Wars celebrations have ceased, it is time to reflect on the RBA’s May cash rate announcement.

The Reserve Bank held the cash rate at 0.1% for another month. This wasn’t surprising, especially given the fact that banking regulator APRA expressed recently that lending standards are being upheld, and that current regulatory settings are “broadly right.”*

Based on this information our message is fairly simple. If you are a first home buyer considering entering the market for the first time, we recommend reaching out to a MoneyQuest broker as soon as possible. If you’re waiting for the property market to cool, you might be waiting a while, so we suggest contacting your local MoneyQuest broker now, so that they can assess your borrowing capacity and help you to purchase your own home sooner rather than later.

The thought of buying a property during this market boom may initially seem daunting, however, it is likely that house prices are going to continue to rise. Therefore, it might be time to touch base with your nearest broker, to get the pre-approval ball rolling.

Until next time, may the finance force be with you.

*Quote sourced from MPA Magazine article – https://www.mpamagazine.com.au/sections/market-talk/no-need-for-government-to-curb-booming-housing-market-regulator-says-276601

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