Cash rate for August remains unchanged at 0.1%
The Reserve Bank today confirmed the official cash rate will remain at 0.10% for the foreseeable future.
News of positive inflation last week is seen as a blip due to the economic impacts of the sustained NSW lockdown.
The expectation was that the RBA would increase its government bond buying program, however it surprised the market by advising it will stick to previously announced reduction plans.
The purchase of government bonds, or quantitative easing as it is known, helps stimulate the economy by increasing the supply of money, keeping interest rates low and putting downward pressure on the Australian dollar which assists exporters.
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 or wish to review your circumstances. Please don’t hesitate to give us a call.
Any advice contained in this article is of a general nature only and does not take into account the objectives, financial situation or needs of any particular person. Therefore, before making any decision, you should consider the appropriateness of the advice with regard to those matters. Information in this article is correct as of the date of publication and is subject to change.