03/03/2020
Cash rate at a record low of 0.50%
After a tumultuous few months, the Reserve Bank of Australia (RBA) has decided to drop the cash rate by 25 basis points, taking it to a new low of 0.50 per cent.
In the official release by the RBA, it was stated that the near-term outlook for the global economy remains cloudy as the impact of the coronavirus takes effect.
The same goes for the Australian economy as we face uncertainty across multiple sectors. But what does this all mean for the housing and credit sectors specifically?
Governor Philip Lowe had this to say:
“There are further signs of a pick-up in established housing markets, with prices rising in most markets, in some cases quite strongly. Mortgage loan commitments have also picked up, although demand for credit by investors remains subdued. Mortgage rates are at record lows and there is strong competition for borrowers of high credit quality. Credit conditions for small and medium-sized businesses remain tight.”
In short, conditions remain strong in our housing and credit sectors, with a competitive market giving borrowers plenty of options to get a better deal.
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