Rates On Hold For July 2020
This month the Reserve Bank of Australia (RBA) has kept the official cash rate at the historic low of 0.25 per cent. The RBA stated that the global economy has experienced a severe downturn as countries seek to contain the coronavirus. Many people have lost their jobs and there has been a sharp rise in unemployment. Leading indicators have generally picked up recently, suggesting the worst of the global economic contraction has now passed. Despite this, the outlook remains uncertain and the recovery is expected to be bumpy and will depend upon containment of the coronavirus. Over the past month, infection rates have declined in many countries, but they are still very high and rising in others.
The RBA is committed to do what it can to support jobs, incomes and businesses and to make sure that Australia is well placed for the recovery. Its actions are keeping funding costs low and supporting the supply of credit to households and businesses. This accommodative approach will be maintained as long as it is required. The Board will not increase the cash rate target until progress is being made towards full employment and it is confident that inflation will be sustainably within the 2–3 per cent target band.
With this announcement, it is likely interest rates will remain low for a while. Now is the perfect time to compare available home loans to make sure you’re still getting a competitive offer that suits you. Get in touch with us today so we can get started!