45% of Australian homeowners have never refinanced their home loan

August 2016 - Monthly Update

At their August meeting the Reserve Bank announced yet another drop in the cash rate. It now stands at an ALL TIME historical low of just 1.50%.

Even thought the banks have been slow to pass on the entire reduction, the overall ongoing trend in home loan interest rates over the last few years has been down.

RBA concerned by rising household debt

AAP and Dow Jones Newswires 12 Aug

A senior Reserve Bank official has highlighted concerns about rising household debt in an indication interest rates may not be cut from current record lows.

RBA deputy governor Philip Lowe said borrowing has increased as house and land prices are driven higher by a rapidly growing population and limited housing supply.

RBA holds rates again

Can't help wondering if the movement of the banks away from the RBA rate movements has made the monthly hype irrelevant. Everyone got tied into an model that left Glenn Stevens in the hot seat. How relevant it may have been in today's economic melee is debatable, it was the norm.

Now there's a new norm. The RBA announcement and ... silence. The banks will now move when they please it would seem. So does that mean the 'RBA cash rate' has been relegated to something esoteric rather than a pivotal focus of national importance.