The RBA kept the cash rate on hold for yet another month yesterday; bringing joy to home owners, as they continue to profit from the low interest rates of the last 6 years.
Homeowners however, are not the only ones to benefit from the RBA’s news. Renters are also reaping the benefits because low interest rates takes pressure off rental growth. This downward pressure has been further enhanced by the high volume of newly built properties hitting the market over the last few years.
“The continued environment of remarkably low interest rates is very beneficial for renters,” said Shane Garrett, senior economist at the HIA. “Last week’s inflation figures from the ABS showed that the pace of rental growth reached a 24-year low during 2017”.