RBA Rate Update
The Reserve Bank of Australia has kept the official cash rate at a historic low and extended its bond buying program in response to the Delta outbreak, saying the highly infectious variant had caused the nation’s economic recovery to lose momentum. The central bank reiterated on Tuesday it would not increase the cash rate – the interest rate on unsecured overnight loans between banks – from 0.1 per cent until actual inflation was sustainably within the 2 to 3 per cent target range, which it does not expect to happen before 2024. “Meeting this condition will require the labour market to be tight enough to generate wages growth that is materially higher than it is currently,” governor Philip Lowe said. “Prior to the Delta outbreak, the Australian economy had considerable momentum. “The recovery in the Australian economy has, however, been interrupted by the Delta outbreak and the associated restrictions on activity.
Despite the stagnation of interest rates, lenders are still hungry for business with the continuation of interest rate reductions and refinance cashback schemes.
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.