Rockingham, Western Australia (PRWEB) July 25, 2012
Leading mortgage broking company The Mortgage Gallery Rockingham, has announced that it will be making the necessary adjustments in order to provide current and prospective clients with the right options to procure affordable home loans in Kwinana, Cockburn, Rockingham and the greater Perth area.
This announcement from the company is in relation to reports stating that the Reserve Bank of Australia, during its board meeting this month, has announced that it will not be making any more cash rate cuts soon. The present RBA cash rate is 3.5%.
According to the RBA, their decision not to make any more rate adjustments for the meantime is because of findings that the Australian economy has grown significantly faster than expected this year. The Reserve Bank believes that the country’s inflation rate will remain within the 2% to 3% range – which is within the bank’s target range. This means that there is no need to make any rate adjustments yet.
Glenn Stevens, Governor of the RBA, in explaining the decision of the board, said, “At today's meeting the board judged that with inflation expected to be consistent with the target and growth close to trend, but with a more subdued international outlook than was the case a few months ago, the stance of monetary policy remained appropriate.”
In addition, Stevens explained that although there were signs that the economic conditions of China and Europe are having some problems – there is still no need to make any adjustments considering that the Australian economy is doing fine, and is even growing.
He also stated that with the interest rate cuts they have previously made, other banks have followed suit – and have dropped their rates as well. The RBA made its last interest cuts in May and June, respectively.
Stevens said, “Interest rates for borrowers have declined, to be a little below their medium-term averages.”
“Business credit has increased more strongly in recent months, though credit growth remains modest overall,” he added.
Paul Bloxham, economist at HSBC, explained that this recent decision of the RBA board and the strong economic conditions of the country signify that no further rate cuts from the RBA may be undertaken within a short period.
Bloxham said, “Unless events change, they won't be rushing to alter monetary policy in the short term at least.”
He added, “From that you'd have to conclude that they're in no hurry to cut interest rates again.”
In support of these developments, industry experts and analysts have also issued their own take on the issue, stating that unless drastic changes take place within the next few months – the cash rate imposed by the RBA will remain. They emphasise that those who are planning to build homes or purchase one should take advantage of these current rates by securing their respective home loans as early as now.
The Mortgage Gallery Rockingham, a company composed of reputable mortgage brokers in Rockingham, Kwinana, Cockburn areas, has responded to these developments by working with leading finance and lending institutions to help clients find affordable and reasonable home loans that will fit perfectly with the RBA’s existing cash rate.
For any of your home loan, business and personal finance needs, contact The Mortgage Gallery Rockingham today. You may reach them at phone number (08) 9527 1800 or you may drop by their website http://www.themortgagegalleryrockingham.com.au/.