The end of months of political uncertainty in Australia this weekend will be a welcome relief for home loan customers after the Reserve Bank of Australia (RBA) left its cash rate on hold.
Managing Director of 1300HomeLoan John Kolenda said it was no surprise to see the RBA maintain its official rate at a record low of 2.5 percent after last month's 25 basis points reduction.
He said the RBA lowering rates by 50 basis points so far this year had been good news for consumers struggling with cost of living increases. But he added the fact the nation has been in election mode for most of 2013 has kept a handbrake on consumer confidence and economic activity.
"The federal election, which takes place this weekend, has been the elephant in the room for Australian business and consumers for most of this year. There will be widespread relief that it will finally be done and dusted with hopefully a clear result one way or the other."
Kolenda said the RBA still could lower rates before the end of the year if consumer confidence remains subdued after the election.
Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email firstname.lastname@example.org