Interest Rates Fall Again

A second major factor in the property investment equation—holding costs including loan repayments—was also impacted this month. At its February meeting, the Reserve Bank of Australia cut official interest rates for the first time in 17 months, with a cut of 0.25% taking official rates to a new 60-year low of 2.25 per cent. In its accompanying statement, the Reserve Bank said that it was driven to act on interest rates because of concern over deteriorating economic activity over the past 6 months. It also indicated that it would consider more cuts to interest rates to further stimulate the economy and restore consumer confidence. All good news for those with home or investment loans, and an excellent reason for investors to look at moving into the property market or expanding their portfolios.