RBA Rate Update
As widely expected the Reserve Bank held rates at 0.10% at its board meeting today.
All eyes will be on the minutes of the meeting to see if there has been any softening on the RBA's stance that rates would not increase until 2024.
Since their June meeting there has been more positive economic information, including falling unemployment, despite the removal of job keeper, and an increase in business investment.
The Bank will also be taking into account data that shows lending for investment property continues to gain pace.
Despite this, most experts believe Australia's interest rates will not increase again until 2023 or later when inflation grows.
"The next move in interest rates is almost certain to be up, with the RBA likely to start tightening monetary policy by 2023," Bendigo Bank's David Robertson said.
"The current pace of economic recovery combined with fiscal and monetary stimulus may bring this forward to late 2022, but the RBA would prefer to wait for other central banks (such as New Zealand and Canada) to move first, before exiting 'zero percent interest rates'."
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.
We're here to help if you have any questions. Please don't hesitate to give us a call.