RBA Rate Update
As anticipated the Reserve Bank board maintained the official cash rate at 0.10% today.
Despite the economic handbrake from the latest round of COVID-19 lockdowns, some economists are speculating that the RBA has underestimated the strength of the economic recovery, leading to predications that rates will start to increase towards the end of 2022.
RBA governor Phillip Lowe is scheduled to hold a Q&A session following today's meeting which is expected to shed more light on the central bank's thoughts on the direction of monetary policy.
The RBA announced it would scale down its bond buying program from $5 billion a week currently to $4 billion a week from early September "until at least mid-November" when the scheme would be reviewed again.
As widely expected given recent positive economic data, the bank also retained the federal government bonds maturing in April 2024 as the focus of its 0.1 per cent yield target.
In short, the bank has pulled back on the stimulus it is providing to keep mortgage and other borrowing rates extremely low, but only very marginally.
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.