The RBA met today, leaving the cash rate at 0.10%, in line with their previous guidance that they expected rates to remain unchanged for some time.
The market has been speculating that rates may rise as early as late next year based on optimism around the vaccine rollout, surging iron ore prices, a strong housing market, a rebound in business investment and record government stimulus in the United States.
The Reserve Bank has previously stated that it did not expect rates to increase until 2024 and until inflation increases to within the bank's target range of 2-3% and wages growth is materially higher.
To support lower rates and protect exporters by pushing down the rising Australian dollar, the RBA has recently stepped up its government bond buying program.
Rates are at a record low and lenders continue to offer very competitive rates. We can answer your questions and look at your circumstances to make sure you're prepared for what could be coming next. This could mean refinancing or approaching your lender for a better rate. Because we do this type of work every day, we have a pretty good idea what lenders can do to win or keep your business.