Interest rates remain on hold at 0.1%
Today’s monthly RBA board meeting has decided once again to preserve interest rates at the very low 0.1%.
‘Housing prices are continuing to rise,’ the RBA said today. This will hardly come as a shock to anyone who’s kept even a glancing eye on the national property market.
But the RBA notes that this rise doesn’t seem to have dampened spirits when it comes to purchasing property. ‘Housing credit growth has picked up due to stronger demand for credit by both owner-occupiers and investors,’ the RBA announcement notes.
‘The Bank’s package of policies – including record low interest rates…is providing substantial and ongoing support to the Australian economy.’
The RBA added that ongoing virus outbreaks have interrupted the Australian economy’s recovery, but added that ‘…as vaccination rates increase further and restrictions are eased, the economy is expected to bounce back.’
The RBA also reiterated that it will not increase the cash rate until ‘actual inflation is sustainably within the 2–3 per cent target range. ‘This scenario is not set to be met before 2024.’
So, it’s steady as she goes from the Central Bank after today’s announcement. In fact, cash rates have stayed at this super-low level since November 2020. But it’s not all plain sailing ahead.
There is some alarm emerging in government circles around the fact that house prices are steaming ahead at a rate not seen for many years. Housing affordability is a perennial hot-button topic, and with a federal election due in the next 6 months, thoughts are turning to ways the government might intervene to keep a lid on price growth.
With the RBA steadfast in keeping rates at rock bottom, there is some speculation that lending rules might be tightened in the near future, and this could make it harder for first home buyers to enter the market unless they have large deposits already saved.
All the same, lenders big and small are still keenly vying for business with attractive home loan rates.
With these rates in mind, you may be searching for a loan that helps pay off your mortgage a little sooner. Or you might be looking for that competitive rate for your property investment. Either way, we have the expertise to help.
Contact our friendly team and let us help find a loan rate that makes dollars and sense to you and your situation.
And we have video conference calls to ensure it’s all safe and convenient for you.