Official cash rate stays put at 2.5% in July

By Nick Syrimi

Financial conditions in Australia remain accommodative, and they're set to stay that way.

This is according to Reserve Bank of Australia (RBA) Governor Glenn Stevens, who recently announced that the financial institution will be keeping the official cash rate at the all-time low level of 2.5 per cent.

"In Australia, recent data indicate somewhat firmer growth around the turn of the year, but this resulted mainly from very strong increases in resource exports as new capacity came on stream; smaller increases in such exports are likely in coming quarters," Mr Stevens said in a July 1 statement.

"Moderate growth has been occurring in consumer demand. A strong expansion in housing construction is now under way."

Whether you're in the market for apartments in Darwin's CBD or on the hunt for office property in Winnellie, the news that interest rates are set to stay near historic lows is great if you're seeking to borrow money for a property purchase.

And according to Mr Stevens, it's likely the favourable interest rate environment will continue, as he ended his cash rate announcement by saying the RBA believes stability in interest rates is the most "prudent course" for the time being.

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