RBA: Cash rate remains steady for another month

The Reserve Bank of Australia (RBA) has decided to leave the official cash rate at 2.5 per cent for another month, which has received praise from a number of real estate industry figures across the nation.

RBA Governor Glenn Stevens said the decision was made following improvements in household indicators throughout the country, with housing and equity markets strengthening in the wake of rate cuts during the last few months.

With the cash rate currently resting at the historically low 2.5 per cent, now could be the perfect time to consider purchasing property in Sydney's Inner West suburbs.

A reduced cash rate often translates into lower interest rates for mortgages - making home loans more competitive and potentially more affordable.

Loan Market Director Mark De Martino said the decision to retain the cash rate was the right one to make, with the property market growing rapidly and further economic growth on the horizon.

"We’re finally starting to see sustained confidence return to the economy. Homeowners and buyers are reaping the rewards of record low interest rates," said Mr De Martino in a November 5 statement.

"Unless we see a massive deterioration in our economy or inflation accelerate well above its target, the RBA is going to continue with its wait-and-see approach. Hopefully low interest rates keep the Australian economy growing at a sustainable pace."

Furthermore, the housing construction industry is beginning to turnaround as well, indicative of an overall recovery to the real estate industry as a whole. Master Builders Australia Chief Executive Officer Wilhelm Harnisch said the recovery was, in part, due to the reduced cash rate.

"The full effects of low rates are still flowing through and keeping rates low at this point makes sense," said Mr Harnisch in a November 5 statement.

"It will help boost the confidence of both the building industry and investors that we have a strengthening and sustained recovery on our hands."