The cash rate has been held at 0.1% again, in a move widely expected by the banking industry.
Despite widespread interest rate rises, the Reserve Bank of Australia (RBA) maintained that it would not be changing schedule, with the next rate rise planned for 2024.
"There'll be very few people surprised that the current low cash rate will be with us for at least another month – and likely for the foreseeable future,” said George Srbinovski, Head of Broker Distribution at 86 400.
“This continued low interest rate environment looks likely to keep the housing market buzzing and should translate into a busy time for brokers.”
“For starters, it provides more opportunities for first time home buyers to break into the market, but it's also an opportunity for brokers to check in with existing customers and ensure they're on the best possible deal.”
“In this environment, great rates are one thing, but the real game will be won on offering a better service overall.”
“Our home loans experience was designed with such times in mind, and offers faster turnaround times and a streamlined application, helping brokers to get more deals done and their customers find the right mortgage for them."
Governor Philip Lowe and the RBA board insisted that, until wages growth and unemployment levels were where they needed to be, no changes would be forthcoming.
“The Board remains committed to maintaining highly accommodative monetary conditions to support a return to full employment in Australia and inflation consistent with the target,” they said in the statement accompanying the decision.”
“Together, the low level of the cash rate, the bond purchase program, the yield target and the ongoing funding that has been provided under the Term Funding Facility are providing substantial support to the Australian economy in the face of lockdowns in parts of the country and the expected resumption of the economic expansion.”
