May 04, 2021
The Reserve Bank of Australia (RBA) has today decided to keep the nation’s official cash rate on hold at 0.1%.
Mortgage Choice chief executive officer Susan Mitchell said low inflation will anchor the cash rate at its record low for some time, with the latest figures from the ABS revealing that the consumer price index recorded subdued growth in the March quarter.
“The low cash rate continues to support home loan interest rates, which will bolster demand in the housing market for the foreseeable future.”
“The housing boom continues, despite a slow down in the rate of growth in house prices. The latest CoreLogic figures reveal that national dwelling values rose 1.8% in April, led by Sydney and Canberra.
“The strong housing market is playing a key role in boosting consumer confidence, with the Westpac-Melbourne Institute Index of Consumer Sentiment increasing by 6.2% in April to the highest level since August 2010.
“Meanwhile, the unemployment rate is still a long way off the RBA’s target and wages growth remains lacklustre so it will be interesting to see what position the Board takes in the May Statement on Monetary Policy later this week.”
“In recent months the monetary policy response has remained dovish. All eyes will now turn to the release of the Federal Budget next week to see what further measures will be announced to support the economy.”
Ms Mitchell said borrowers should be making the most of the low rate environment and negotiating with their lender to get a better deal.
“If you’ve had your home loan for more than 12 months, you should consider your options and see if you can get a better deal.
“There are still several cashback offers in the market, and interest rates remain at record lows, so whether you’re refinancing or looking to buy your first property, you may be able to secure a great rate.
“Speak to your local Mortgage Choice mortgage broker today to learn more about your options and to find the right home loan product for your needs,” said Ms Mitchell.