Last week the Reserve Bank kept the official interest rate on hold at the historic low of 1.5 per cent, extending its long running streak of no movements up or down.
April’s meeting made for the 18th consecutive board meeting where the RBA has not budged from its position, making it the longest stint where interest rates have remained unchanged.
The previous record of 17 meetings occurred between February 1995 and July 1996 when the cash rate was significantly higher at 7.5 per cent.
The RBA’s last interest rate movement was in August 2016 when they reduced the rate by 0.25 per cent.
Where to now?
The RBA’s low interest rate streak looks likely to continue, with no signs of any changes in the immediate future. According to Domain, many economists believe that the next interest rate rise will be up, however that may not be until later this year, or possibly until some time in 2019.
How to make the most of low rates
Homeowners have a great opportunity to take advantage of interest rates while they continue to remain low. Increasing home loan payments while interest rates are low is a great way to reduce your loan amount and cut down on the interest you pay overall.
As the old say goes, ‘make hay while the sun shines’, and this holds especially true when it comes to paying off a mortgage.